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Hungary gen gov't deficit reaches 151% of full-year target

Hungary's general government deficit reached HUF 1,304.8 billion at the end of November or 151% of the full-year target, the National Economy Ministry said in a second reading on Tuesday.

In the first reading, published on December 7, the ministry said that in spite of the pro rata overshoot, Hungary will still achieve the 2010 deficit target of 3.8% of GDP because of big revenue items in December, including the usual inflow of corporate tax, nearly HUF 90 billio n expected from the second payment of a levy on financial sector companies and HUF 161 billion from "crisis taxes" levied on companies in the energy, retail and telecommunications sectors due in December. Government cost-cutting measures made at the beginning of December will save more than HUF 100 billion in spending by central budget-funded institutions this year, the ministry added.

The central budget ran a HUF 1,282.8 billion deficit in January-November, 154.5% of the full-year target. The social security funds showed a HUF 101.3 billion gap, 146.0% of the full-year target, but separate state funds ran a HUF 79.3 billion surplus, more than twice the expected surplus for the whole year. (MTI-ECONEWS)