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The deficit widened by HUF 1.582 tln, or 3.3 percentage points of GDP, compared with the same period a year earlier. In the second quarter alone, the shortfall amounted to HUF 758.2 bln, equivalent to 3.3% of GDP.
First-half general government revenue rose 2.9% to HUF 19.018 tln, while expenditure increased 10.8% to HUF 21.828 tln.
Social contributions recorded the largest revenue increase in absolute terms, rising HUF 473 bln, or 10.4%. Income tax revenue grew HUF 313 bln, or 9.7%, while taxes on production increased HUF 150 bln, or 2.1%. VAT receipts rose HUF 163 bln, or 4.1%.
Other revenue fell HUF 399 bln, or 11.4%, from a year earlier.
Employee compensation accounted for the largest expenditure increase, climbing HUF 1.044 tln, or 23.1%. Social benefits other than transfers in kind rose HUF 609 bln, or 12.7%.
Interest expenditure increased HUF 44 bln, or 2.6%, while intermediate consumption rose HUF 129 bln, or 3.9%. Gross fixed capital formation fell HUF 311 bln, or 21.5%, and other expenditure increased HUF 607 bln, or 15.6%.
The central government recorded a first-half deficit of HUF 3.107 tln, while social security funds posted a HUF 16.1 bln shortfall. Local governments partially offset those deficits with a HUF 313.1 bln surplus.
In the second quarter, all three subsectors recorded deficits: HUF 676.9 bln for the central government, HUF 50.5 bln for local governments and HUF 30.8 bln for social security funds.
Second-quarter revenue fell 3.6% year on year, while expenditure rose 4.6%. The balance deteriorated by HUF 820 bln, or 3.6 percentage points of GDP.
KSH’s second preliminary national accounts estimate put the full-year 2025 general government deficit at HUF 4.145 tln, or 4.7% of GDP. Government debt stood at HUF 64.923 tln, equivalent to 74.4% of GDP, at the end of 2025, based on National Bank of Hungary data.
The figures were reported to Eurostat under the EU’s Excessive Deficit Procedure and compiled using the European System of Accounts methodology.
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