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Hungary general government deficit HUF 536.7 bln in January

Hungaryʼs cashflow-based general government balance, excluding local councils, came to HUF 536.7 bln in January-March, or 61.2% of the full-year target, the National Economy Ministry said in a second reading of data today, according to Hungarian news agency MTI.

The balance figure was the same as in a preliminary report released on April 8. The ministry noted that the deficit is front-loaded, as usual, with expenditures exceeding revenue in the first half of the year. In January-March 2014, the deficit was HUF 701.2 bln.

The ministry attributed the decline in the deficit from the same period a year earlier to higher tax revenue resulting from steady economic growth and a favorable interest balance.

The central budget had a deficit of HUF 558.3 bln in January-March, while the social security funds had a surplus of HUF 10.7 bln and the separate state funds had a surplus of HUF 10.9 bln.

In March alone, the deficit reached HUF 226 bln.

An increase in revenue during the month was due to higher tax payments resulting from higher wages and to measures aimed at improving tax morale, the ministry said.

The ministry also noted that family and social policy allowances disbursed in March this year substantially exceeded similar expenditures paid in the previous year. This is because, given the Easter holidays, April family and disability allowances – valued at almost HUF 35 bln combined – had already been transferred by the end of March, increasing expenditures for March while reducing them for April, the ministry said.