Hungary's ESA general government deficit could reach 3.1% of GDP in 2012, the National Bank of Hungary said on Tuesday, citing an analysis of the 2012 budget bill prepared by the central bank's staff.
The government targets a 2.5% deficit in 2012.
The MNB said the deficit target could be achieved if the government does not spend the bulk of reserves in the budget bill, amounting to 0.7% of GDP, and implements, in full, all measures contained in the bill.
Not spending the reserves, however, would considerably narrow the government's room for maneuver, leaving it without means to counter-balance possible unfavorable effects next year, the MNB said.
The MNB will publish the analysis in full on Thursday.