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Hungary fiscal deficit was 2.6% in 2011 without one-off items, economy minister says

Excluding one-off items, Hungary’s 2011 general government deficit was 2.8% of GDP as against the targeted 2.94% of GDP deficit ratio, National Economy Minister Gyorgy Matolcsy told an extraordinary session of parliament’s Budgetary and Audit Committee on Thursday.

Mr Matolcsy added that Hungary had a European System of Accounts (ESA) surplus of more than 3% of GDP last year.

The national economy minister said that the introduction of a flat-rate personal income tax regime has exercised a positive impact on budget revenue, employment, the whitening of the economy and, perhaps, had even improved Hungary’s demographic situation as well.

Mr Matolcsy remarked that the personal income tax revenue had grown 1%.

Hungary’s GDP grew by 1.3%-1.4% rather than the previously expected 3% in 2011, but the number of employed still grew by 42,000, the economy minister said.