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Hungary April fiscal deficit third of ministry forecast

Hungary posted a cashflow-based general government deficit, excluding local councils of HUF 27.1 billion in April, down a sharp HUF 54.8 billion from the ministry's mid-April projection, preliminary figures of the Finance Ministry released on Wednesday revealed. The ministry did not elaborate only said that the outcome was better than its conservative forecast.

The January-April deficit came to HUF 637 billion or 72.5% of the annual target, and up HUF 33.7 billion from a year earlier. The April shortfall was down from a HUF 38.1 billion deficit in April 2009.

The central budget had a deficit of HUF 41.5 billion deficit in April and a HUF 649.5 billion shortfall in the first four months or 77.8% of the annual forecast. The two state social security funds had a combined deficit of only HUF 2 billion in April alone, bringing their four-month deficit to HUF 26.8 billion, just a third of the annual target. The separate state funds had a combined surplus of HUF 16.4 billion in April, and a HUF 39.3 billion surplus in January-April, which exceeded their forecast annual surplus by HUF 4.2 billion.

The four-month central budget deficit was HUF 115 billion higher than in 2009, while the four-month deficit of the social security funds was a sharp HUF 66.4 billion lower and the four-month surplus of the separate state funds exceeded the respective 2009 surplus by HUF 14.9 billion. The ministry said earlier, however, that one-off items and other changes allow only limited comparison.

The ministry said in the middle of April it expected a HUF 81.9 billion deficit for April and a HUF 27.6 billion deficit for May.

The full-year cash flow-based deficit target, excluding local councils is HUF 878.9 billion, or 3.8% of GDP. (MTI-ECONEWS)