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General govʼt runs 0.4%-of-GDP deficit in Q1-Q3

The deficit of the general government sector in the first three quarters of 2018 was HUF 110 billion, representing 0.4% of GDP. The balance improved by HUF 54.4 bln, or 0.2 of a percentage point as a proportion of GDP, compared to the corresponding period of 2017.

The change in the balance was due to a greater increase in revenues than in expenditures, noted the Central Statistical Office (KSH).

In the first three quarters of 2018, compared to the equivalent period of 2017, general government sector revenues totaled HUF 13.603 trillion, while expenditures amounted to HUF 13.713 tln, according to figures from the KSH.

Revenues grew by HUF 1.309 tln, or by 10.7%. Social contributions rose by HUF 187.8 bln (up 5.3%). Revenues from taxes on income were HUF 117.8 bln (6.0%) higher than a year earlier. The largest increase, of HUF 561.1 bln (11.2%), was recorded in taxes on production, within which VAT revenues rose by HUF 371.2 bln (up 14.3%). Other revenues, consisting mainly of EU transfers, grew by HUF 443.2 bln (up 25.7%).

Expenditures increased by HUF 1.255 tln, or by 10.1%. The growth in the case of paid compensation of employees was HUF 179.2 bln (5.9%), while social benefits other than social transfers in kind were up HUF 193.8 bln (5.7%). Other expenditures, consisting mainly of current and capital transfers, increased by HUF 471.6 bln (up 22.7%), while gross fixed capital formation rose by HUF 428.2 bln (up 39.3%).

Intermediate consumption grew by HUF 13 bln (up 0.6%). On the other hand, interest expenditures of the general government sector decreased by HUF 30.7 bln (down 3.8%).

In the third quarter

In the third quarter of 2018 alone, compared to Q3 2017, the general government sector showed a deficit of HUF 75.8 bln, equivalent to 0.7% of quarterly GDP. The balance improved by HUF 298 bln, or by 3.2 percentage points, compared to the third quarter of 2017.

Revenues increased by HUF 538.6 bln (13.1%) in the quarter, while expenditures were HUF 240.6 bln (5.4%) higher than a year earlier.

The balance of the general government sector for the fourth quarter of 2018, and for the whole year of 2018, will be published on April 1.