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Hungary records surplus in July

Hungary's cash flow-based general government, excluding local councils, ran a HUF 36.1 billion surplus in July, but the January-July deficit was still 114.6% of the full-year target, the National Economy Ministry said.

The central budget had a HUF 9 billion surplus in July and separate state funds had a surplus of HUF 31.7 billion. However, the social security funds ran a deficit of HUF 4.6 billion.

The general government deficit for January-July reached HUF 997.5 billion, or 114.6% of the full-year target. The central budget deficit reached 121.1% of the full-year target.

In the same period a year earlier, the general government deficit was at 88.1% of the full-year target and the central budget deficit was at 95.4% of full-year target.

Revenue from the main types of taxes -- corporate tax, personal income tax and excise tax -- were all under their level in July a year earlier. However, the shortfall was compensated for in part by more revenue from VAT.

The ministry attributed the improvement in the balance in July to a HUF 29 billion rise in revenue and a HUF 54 billion fall in expenditures compared to July 2009 at budget-funded institutions.

Pension expenditures of the social security funds rose even as revenue from contributions fell about HUF 18 billion compared to July last year.

The improvement in the balance of separate state funds came from higher professional training and rehabilitation contributions into the Workforce Fund.

In a breakdown of the general government, the ministry said revenue came to HUF 7,321.5 billion in January-July, while expenditures reached HUF 8,319.0 billion. Revenue of the central budget came to HUF 4,539.7 billion, while expenditures reached HUF 5,552.5 billion. Revenue of separate state funds reached HUF 266.3 billion, while expenditures came to HUF 204.0 billion. Revenue of the social security funds was HUF 2,515.5 billion and expenditures were HUF 2,562.5 billion. (MTI – Econews)