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Hungary forecasts October budget deficit of Ft 62.8 bln

Hungary cut its annual cash-flow deficit forecast to Ft 1.76 trillion from Ft 1.77 trillion last month after revising the target to Ft 1.77 trillion from Ft 1.55 trillion in June. Prime Minister Ferenc Gyurcsány is raising taxes, boosting regulated energy and drug prices and cutting government jobs to trim the deficit. Hungary's plan on adopting the euro, submitted to the European Commission on September 1, forecasts deficit by EU standards to decline to 3.2% of GDP by 2009 from 10.1% of GDP projected for this year. The September budget deficit was Ft 70.2 billion, compared with a government forecast of Ft 142.7 billion, the ministry said. The shortfall was narrower than expected as tax revenue was above target and state spending was lower than budgeted, the ministry said on October 9. (Bloomberg)