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According to MTI, the report noted that the deficit target of the general government, corresponding to a 3.7% ESA deficit target in the adopted budget law, is HUF 4.123 tln. At the same time, the expected annual ESA deficit is 5.0%, or HUF 5.055 tln. The deficit at the end of October is 72.6% of that amount.
The central budget gap reached HUF 3.616 tln, and the social insurance funds were HUF 135.5 billion in the red, but separate state funds had a surplus of HUF 84 bln.
In September alone, the general government deficit came to HUF 339 bln.
Interest expenditures came to HUF 3,785.6 billion in January–October, HUF 587.1 bln more than in the base period.
Revenue from tax and contributions climbed 8%. Revenue from taxes on consumption rose 9%.
Expenditures on transportation and public utilities reached HUF 2.11 tln, up HUF 372.7 bln from the same period a year earlier, boosted by road upgrades, spending on waterworks infrastructure, and expenditures related to the regulated utilities price scheme for households, the ministry said.
Spending on pensions and pension-like benefits reached HUF 6.072 bln, and spending on curative and preventive care came to HUF 2.414 tln, both higher than in the base period.
“Hungary’s finances are in order and the budget is stable, allowing the government to ensure the resources necessary for measures to support families, pensioners, young people and businesses,” the ministry said.
The ministry said Hungary’s government was maintaining fiscal discipline by ensuring the budget deficit, relative to GDP, narrowed from year to year and state debt levels stayed on a sustainable path. It added that Hungary could not be allowed to fall under an excessive deficit procedure again and that the primary balance should remain close to zero.
Total revenue in January–October reached HUF 32.602 tln, up 5.6% from the same period a year earlier. Total budget expenditures reached HUF 36.27 tln, some 6.9% higher than in the base period.
Central budget debt increased by HUF 4.399 tln by the end of October. Net forint issues increased the debt by HUF 3.089 tln. Net FX issuance reached HUF 2.434 tln. The strengthening of the forint exchange rate compared to the end of last year reduced the book value of the FX portion of the debt in forints by HUF 1.036 tln, the report shows.
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