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General government deficit reaches HUF 954.6 bln in September, around 106.9% of full-year target

Hungaryʼs cashflow-based general government deficit, excluding local councils, reached HUF 954.6 bln at the end of September, a first reading of data released by the National Economy Ministry yesterday reveals.

The deficit reached about 106.9% of the HUF 892.4 bln full-year target, Econews calculated.

The ministry noted that the deficit had reached HUF 844.6 bln at the end of September last year. The ministry attributed the difference between the two years to changes to European Union funding.

Tax revenues have significantly risen over the past 12 months by around HUF 500 bln, however chapter-administered allocations from the EU were lower than last year by around HUF 407 bln.

The central budget deficit came to HUF 1,006.6 bln for January-September. The social insurance funds and separate state funds had surpluses of HUF 29.9 bln and HUF 22.1 bln, respectively.

For the month of September, the deficit came to HUF 39.7 bln in contrast to the HUF 14.2 bln surplus in the same month a year earlier.

The European Commission has lifted its suspension on paying EU funds and several hundred millions of forints could be transferred in the next month, lowering the deficit, the ministry added.

The ministry noted that the deficit is front-loaded, as usual, with expenditures exceeding revenue in the first half of the year. The ministry confirmed the full-year deficit target of 2.4% of GDP, calculated according to European Union rules.