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Hungary gen govt deficit reaches almost 50% of full-year target in Jan-Feb

Hungary's general government, excluding local councils, reached HUF 286.6 billion at the end of February or 49.7% of the target for the full year, the National Economy Ministry said on Wednesday.

The 2011 budget act earmarks an annual cash flow-based deficit target of HUF 576.2 billion for the central government. 

The January-February deficit was little more than half of the respective 2011 shortfall in nominal terms, but was up in proportion to the full-year deficit. The January-February 2011 deficit was 32.3% of the preliminary HUF 1,734-4 billion shortfall registered last year. 

The deficit for February was HUF 393.9 billion.

Corrected for one-off items, the two-month deficit reached HUF 294.3 billion or little less than one-third of the corrected annual target, the ministry said. 

The ministry noted that the corrected deficit compared favorably to performance last year when, the January-February deficit reached HUF 566.9 billion or 39.4% of the preliminary one-off-items-adjusted deficit of the full year.

The February deficit of the central government was the result of a HUF 404.5 billion shortfall of the central budget, while the social security funds registered a HUF 3.7 billion deficit and the separate state funds had a HUF 14.3 billion surplus last month.

In the first two months, the central budget had a HUF 319.3 billion deficit, reaching 53.8% of the respective full-year target and the social security funds registered a deficit of HUF 2.2 billion or 6.2% of the respective annual target. The separate state funds had a surplus of HUF 34.9 billion in January-February or two-thirds of their annual target.