Excluding one-off factors coming to 3% of GDP, the net financing requirement of the Hungarian general government, equivalent to the ESA95 general government deficit, was 8.5% of GDP of the seasonally adjusted GDP in the first quarter 2006, the National Bank of Hungary (MNB) reported based on seasonally adjusted financial accounts data on its website on Monday.
Including one-off factors such as the delivery of the first Gripen aircafts under a long-term lease in the first quarter and motorway investments activated in the period, the ESA95 deficit came to 11.5% of GDP in the quarter. The figures, revised 0.4 percentage points down from preliminary ones reported on May 16, are not adjusted for the effects of the pension reform.
The government projects this year's ESA deficit at 9.4% of GDP before and 8% after adjustment for the pension reform, taking into account the deficit-reducing effects of the fiscal tightening measures announced early June.
In 2005, Hungary's ESA deficit was 7.5% before adjustment for the effects of the pension reform, and the adjusted deficit was 6.1% of GDP.