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General government surplus 0.1% of GDP in Q1

Hungaryʼs general government ran a surplus - calculated according to the European Unionʼs accrual-based accounting rules - of 0.1% of GDP in the first quarter of 2019, the Central Statistical Office (KSH) reported on Tuesday.

The surplus of the general government sector in the first quarter of 2019 was HUF 10 billion, 0.1% of GDP according to preliminary data. The balance improved by HUF 90 billion, or by 0.9 of a percentage point as a proportion of GDP compared to the corresponding period of the previous year. The improvement in the balance was due to a larger increase in revenues than in expenditures, the KSH noted.

In absolute terms in the first quarter of 2019, the general government sector’s revenue amounted to HUF 4.554 trillion, and expenditures to HUF 4.543 tln.

Revenues were up by HUF 313 bln, or by 7.4%. The largest, HUF 168 bln (10.0%) increase in value was recorded in taxes on production, within which VAT revenues grew by HUF 110 bln (up 12.5%). Revenues from taxes on income were HUF 52 bln (7.5%) higher than a year earlier. Social contributions rose by HUF 107 bln (up 8.7%). Other revenues decreased by HUF 16 bln (down 2.5%).

Expenditures increased by HUF 223 bln, or by 5.2%. The growth in the case of gross fixed capital formation was HUF 97 bln (up 33.4%), and regarding intermediate consumption HUF 101 bln (up 17.0%). Compensation paid to employees went up by HUF 10 bln (0.9%), and social benefits other than social transfers in kind by HUF 15 bln (1.3%). Interest expenditures grew by HUF 4.5 bln (1.8%). Other expenditures decreased by HUF 6 bln (down 0.7%).

The government targets an ESA 2010 general government deficit of 1.8% of GDP for the full year, noted state news wire MTI.

Consumer prices were up 3.2% and industrial producer prices rose 3.1% year-on-year in Q1 2019, while GDP grew 5.3%, MTI added.

Data for the balance of the general government sector in the second quarter of 2019 will be published on October 1.