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Hungary's government budget proportionally larger than those of peers

Hungary's government budget is six percentage points higher as a proportion of GDP than the average in the other three members of the Visegrád Group - Poland, the Czech Republic and Slovakia - and other countries of a similar level of economic development, the National EconomyMinistry reported in an analysis sent to MTI on Friday.

The ministry attributed nearly three percentage points of the difference to Hungary's greater interest-financing expenses related to its higher government debt.

The analysis said that government budgetary expenditures as a percentage of GDP was more than 50% in Hungary, compared to 46% in the Czech Republic, 44% in Poland and 41% in Slovakia.

The ministry stated that Hungary's budget does not promote growth and contains a high degree of current-account expenditures, notably social-subsidy expenditures. The analysis noted that social-security expenditures are 18.29% of GDP in Hungary, compared to 16.46% in Poland and 12.24%  in Slovakia. Hungary spends more on pensions, social provision, family subsidies and unemployment benefits than the other three members of the Visegrád Group.

Hungary's government budget allocates one percentage point less than the average among other Visegrád Group countries to healthcare, however, the analysis said.