Are you sure?

Hungary general government deficit 4.0%

Hungary ran a ESA95 general government deficit of HUF 259 billion or 4.0% of the quarter's GDP in the first quarter of 2010, the Central Statistics Office (KSH) said based on national account statistics on Monday.

The deficit fell HUF 54 billion or by 0.8 percentage-points of GDP from a year earlier.

The first-quarter deficit ratio compares to a 3.8%-of-GDP deficit target for the full year.

General government revenues rose 3.1% from a year earlier and general government expenditure increased 1.1%.

In 2009 revenue fell 0.9% and expenditure fell 0.6%.

Rising items among revenues in Q1 included taxes on production and imports of which revenue rose 15.9% to HUF 1,043 billion, including HUF 583 billion from VAT. Revenues from VAT rose as much as 25.9% from a year earlier, including the effect of a 5%-point rise in the VAT rate to 25% as of July 1. Income tax revenues fell, in contrast, a sharp 11.9% from Q1 2009 to HUF 573 billion and social security contribution also fell, by 8.4% to HUF 793 billion, reflecting tax changes among others.

Among expenditures, interest expenditures fell by 5.4% from a crisis-pressed base to HUF 292 billion, and spending on social benefits (excluding transfers in kind) fell 4.6% to HUF 1,056 billion in Q1. Among items with increases, gross fixed capital formation or investments rose the most, by 19.5% from a low base to HUF 105 billion. Government current consumption also rose, by 5.6% to HUF 493 billion, and government spending on wages rose 5.6% to HUF 770 billion. (MTI-ECONEWS)