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FinMin projects February deficit of HUF 294.2 bln

Hungary’s Finance Ministry expects a general government deficit, excluding local councils, of HUF 294.2 billion in February and it puts the Q4 deficit at HUF 586.2 billion, state secretary László Keller said.

The Q4 projection is equivalent to 2.2% of GDP, Keller said.

The general government ran a HUF 37.8 billion surplus in January.

The ministry projects a full-year cash flow-based deficit of 2.9% of GDP and an accrual-based (ESA '95) deficit of 3.2% of GDP, taking into account an expected 3.0%-3.5% economic contraction. The government is still “targeting” the originally planned 2.6% cash flow-based deficit, Keller said. Inflation is expected to be 3.7%-3.9% this year, lower than the earlier projected 4.5%, he added.

In the interest of meeting the modified deficit target this year, the government wants to make cost savings of HUF 200 billion – HUF 220 billion, Keller said.

In January, corporate tax revenue was HUF 7.9 billion more than in the same month a year earlier. Excise tax revenue was up HUF 14 billion and personal income tax revenue rose HUF 7 billion. Registration tax revenue was halved to HUF 2.9 billion. (MTI – Econews)