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February budget data signal risk of overshoot

Hungary's budget deficit hit 40% of the full-year projection in the first two months of the year, which analysts said highlights risks over the attainability of this year's deficit target.

The Finance Ministry said that in February the budget posted a deficit of HUF 381.9 billion after a surplus in January. It said in a statement that the faster accumulation of the deficit this year than in 2009 was due to extra debt service costs, a sum of HUF 40 billion paid to finance hospitals, HUF 20 billion in subsidies paid to loss-making railways MÁV and additional wage payments worth HUF 10 billion.

In January-February last year the deficit stood at 27.8% of the full-year 2009 target. (Reuters)