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Oszkó sees deficit reaching three-fourths of full-year target in Q1

Hungary is expected to run up HUF 651.3 billion of the projected full-year HUF 870.3 billion cash flow-based deficit for 2010 in the first quarter of the year, Finance Minister Péter Oszkó said on Tuesday.

This year's cash flow-based general government deficit is expected to be 3.3% without local councils and 4.0% with local councils.

Oszkó said 40% of the HUF 57 billion in general budget reserves for 2010 could be spent in the first half of the year. The only amount, so far, the government counts on spending from the reserves is HUF 19 billion promised to Budapest public transport company BKV, and HUF 10 billion of this amount will be spent in the first half of the year, he added.

The government does not want to spend the HUF 200 billion in stability and interest rate risk reserves, Oszkó said.

The Finance Ministry drew up this year's deficit projection together with the IMF and the European Union, who are financing a support package for Hungary, said state secretary Álmos Kovács, answering a question.

Based on last year's 3.6%-of-GDP cash flow-based general government deficit, there is a real chance Hungary can achieve an accrual-based deficit of 3.9% for 2009, Oszkó said. (MTI-Econews)