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Hungary puts 2020 deficit at 2.9% of GDP

Hungary has put its 2020 general government deficit, calculated according to the European Unionʼs accrual-based accounting standards, at 2.9% of GDP, Hungarian news agency MTI says, citing a report submitted by the Central Statistical Office (KSH) to Eurostat in the framework of an Excessive Deficit Procedure.

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Minister of Finance Mihály Varga said late in March that Hungary would not be able to achieve its 1%-of-GDP deficit target this year because of the impact of the coronavirus pandemic, but he added that the goal remains to keep the gap under the 3% threshold stipulated by the EUʼs Maastricht criteria.

Varga said the budget has more than HUF 400 billion in reserves, leaving sufficient room to manage a 3% deficit. But if the economy needs to be restarted, the deficit could be higher, he added.