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Jan-Nov gen govʼt deficit reaches 76.7% of full-year target

Hungaryʼs cash flow-based general government, excluding local councils, ran a HUF 766.3 billion deficit at the end of November, reaching 76.7% of the HUF 998.4 bln full-year target, the Finance Ministry said in a preliminary release on Monday, state news wire MTI reports.

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The central budget ran a HUF 659.5 bln deficit in the first eleven months, while separate state funds were HUF 78.5 bln in the black and the social insurance funds were HUF 185.3 bln in the red.

Alone in the month of November, the general government ran a HUF 190.9 bln deficit.

On the revenue side, revenue from VAT reached 95.8% of the full-year target by the end of November, while revenue from personal income tax stood at 92.6%, revenue from excise tax was at 94.6% and revenue from payroll tax was 89.3% of the full-year target.

The Finance Ministry said that payouts in January-November for European Union financed projects came near to HUF 1,341 trillion in the first eleven months, while transfers from Brussels reached HUF 1.156 tln.

Expenditures were affected by state funding for investments undertaken in the framework of the Modern Cities Program and the Hungarian Village Program, road and railway upgrades, and incentives for business investments that boost competitiveness, the ministry said.

The ministry noted that expenditures were raised further by spending on a package of family support measures introduced in July, with almost HUF 400 bln paid out in prenatal baby support loans alone. One-off payouts to pensioners, linked to economic performance, totaled HUF 77 bln, the ministry said.

The ministry said the full-year deficit target of 1.8% of GDP, calculated according to the EUʼs accrual-based accounting rules, is achievable.