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Ministry confirms HUF 121.5 bln deficit at end April

Hungaryʼs cash flow-based general government, excluding local councils, ran a HUF 121.5 billion deficit at the end of April, the Ministry for National Economy (NGM) confirmed in a second reading of data released today, according to state news agency MTI. The deficit reached 10.4% of the HUF 1.1664 trillion full-year target.

The central budget had a HUF 100.3 bln deficit and the social insurance funds were HUF 61.1 bln in the red at the end of April. Separate state funds ran a HUF 39.9 bln surplus. In the month of April alone, the general government ran a HUF 76.6 bln surplus.

The ministry noted that the deficit for the first four months was below the HUF 144.9 bln deficit in the base period. 

Higher wages - the result of an agreement reached between the government, employers and unions late last year - boosted payroll tax and VAT revenues via consumption, it said. Budget revenues were also lifted by the whitening of the economy and by one-offs, such as the sale of state-owned farm land. EU expenditures related to chapter-based allocations were especially higher compared to last yearʼs base period, providing revenue of HUF 102.7 bln compared to HUF 39.4 bln. 

The deficit target of 2.4% of GDP for the full year "can be safely achieved," the ministry added.

Total revenue for January-April 2017 was HUF 5.459 tln and expenditure was HUF 5.581 tln, compared to respective figures of HUF 5.077 tln and HUF 5.222 tln in January-April 2016.

Corporate tax income in January-April was HUF 159.3 bln, down by HUF 3.8 bln compared to the first four months of 2016. 

Income from value-added tax was at HUF 969.6 bln, up by HUF 46.4 bln. Income from excise tax, at HUF 282.1 bln, was down by around HUF 12.5 bln, however.

Income from tax on financial transactions was up HUF 5.8 bln at HUF 74.8 bln, while income from the special bank levy was down at HUF 17.9 bln from HUF 18.8 bln earlier.