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August general gov’t deficit reaches HUF 97.7 bln

The general government deficit, excluding local councils, was HUF 97.7 billion in August, in line with the target and bringing the January-August deficit to HUF 913.5 billion, Finance Ministry state secretary Tamás Katona said.

The ministry is standing by its full-year targets for an accrual-based deficit of 3.9% of GDP and a 4.1%-of-GDP cash flow-based deficit, including local councils.

The ministry expects the cash flow-based general government deficit, excluding local councils, to reach HUF 1,067.7 billion by the end of September.

The central budget deficit came to HUF 54.9 billion in August. Revenue was about HUF 10 billion less than in the same month a year earlier. Net HUF 2.1 billion in corporate tax refunds were paid out in August, including HUF 17 billion in refunds from advance payments, against HUF 37 billion in corporate tax inflows, including HUF 9.1 billion in profit tax payments. Due to falling wage outflows and the elimination of annual bonuses in the public sector, August income tax revenue of the central budget fell HUF 20 billion under the HUF 159.7 billion in the same month a year earlier. Revenue of central budget-funded organizations amounted to HUF 121.3 billion in August, HUF 31 billion more than in the same month a year earlier.

Central budget expenditures fell HUF 50 billion from August 2008. Spending on family subsidies and social support accounted for HUF 40 billion of the drop, though the fall was related to calendar-year differences as payments for September 2008 were made in August. Spending of budget-funded institutions was up HUF 16 billion in August, in line with the rise in revenue.

Social insurance funds revenue from contributions fell HUF 17 billion in August from the same month a year earlier, also because of falling wage outflows, while monthly pension payments were up HUF 8.3 billion and total expenditures rose HUF 10.4 billion. The deficit in the health and pension funds rose to HUF 28.96 billion from just HUF 280 million in August 2008. (MTI – Econews)