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KSH: Hungary’s deficit to GDP reaches 1.9% in 2015

The Hungarian governmentʼs deficit was HUF 625.5 billion, or 1.9% of GDP, in 2015 and HUF 113.6 bln less or 0.4 of a percentage point lower as a proportion of GDP than the deficit in 2014, Hungary’s Central Statistical Office (KSH) reported today citing preliminary data. The lower-than-base-period deficit stemmed from revenues increasing at a higher rate than expenditures.

Government debt – based on data from the National Bank of Hungary – was HUF 25.394 trillion, or 75.3% of GDP at the end of 2015, KSH added. 

Revenue grew by 7.7%, HUF 1.173 tln, in 2015 as compared to the previous year. Revenue from taxes on production and imports increased by HUF 436.7 bln (7.3%), within which VAT payments were up by 9.8%, and actual social contributions by HUF 279.3 bln (6.7%), KSH added.

Expenditures were up by HUF 1.06 tln or 6.6%, in 2015. Other expenditures rose by HUF 595.2 billion (23.2%) and expenditures on gross fixed capital formation by HUF 473.8 billion (26.7%), representing the largest growth; the payments of EU funds represented a decisive part of both items, KSH said.

According to KSH data, compensation of employees was up 7.7%, while there was a decreases in interest payments (7%), intermediate consumption (6%) and social benefits, other than social transfers in kind (0.4%).