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Gen govʼt deficit at 2% of GDP in 2019

According to preliminary data, the deficit of the general government sector in 2019 was HUF 958 billion, 2% of GDP, the Central Statistical Office (KSH) reports.

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KSH reported the data to Eurostat, the Statistical Office of the EU, in compliance with the regulation on Excessive Deficit Procedure (EDP), according to the methodological requirements included in the European System of Accounts (ESA 2010).

The balance improved by 0.1 percentage points as a proportion of GDP compared to 2018.

The debt of the general government sector at the end of 2019, based on data of the National Bank of Hungary (MNB), was HUF 31.040 trillion, 66.3% of GDP.

In 2019, the general government sector’s revenues were HUF 20.588 tln while expenditures amounted to HUF 21.546 tln.

Compared to 2018, revenues went up by HUF 1.594 tln (8.4%). The largest, HUF 677 billion (8.6%) increase in value was recorded in taxes on production, within which VAT revenue growth was HUF 397 bln (9.6%). Revenues from taxes on income were HUF 291 bln (10.2%) higher. Social contributions rose by HUF 334 bln (6.4%). Other revenues increased by 292 bln (9.5%).

Expenditures increased by HUF 1.635 tln (8.2%). The growth in case of gross fixed capital formation was HUF 305 bln (12.2%), regarding intermediate consumption it was HUF 396 bln (11.6%). Paid compensation of employees went up by HUF 255 bln (5.6%) and social benefits other than social transfers in kind increased by HUF 228 bln (4.7%). Interest expenditures grew by HUF 50 bln (by 4.9%) and other general government sector expenditures went up by HUF 402 bln (11.3%).

In the last quarter of 2019, the general government sector had a deficit of HUF 764 bln (6.3% of GDP). The balance worsened by HUF 108 bln or by 0.4 percentage points compared to Q4 2018. Revenues increased by HUF 512 bln (9.8% year-on-year). Expenditures were HUF 620 bln (10.6%) higher than a year earlier.