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Two-month budget deficit unchanged from last year

  Hungary’s two-month central budget deficit was largely unchanged from the same period last year, as revenue was just 0.2 billion lower at HUF 1,324.9 and expenditure was up a slight HUF 0.7 billion at HUF 1,586.9 billion, Finance Ministry figures published on Thursday show.

This year’s January-February central budget deficit of HUF 262 billion was a rare repetition of the HUF 261 billion deficit last year.

The general government deficit of HUF 256.6 billion in the first two months of this year was HUF 74.5 billion more compared to the same period last year as social insurance funds slipped into a HUF 26.1 deficit from a HUF 38 billion surplus last year and the surplus in separate state funds fell to HUF 31.5 billion from 40.9 billion last year.

Despite largely unchanged central budget revenue from the first two months of last year, consumption-related tax inflow was down HUF 74.5 billion at HUF 483.7 billion in the first two months this year, from a HUF 79.7 billion fall in VAT revenue, a halving of car- registration tax income to HUF 7 billion, while excise-tax inflow rose HUF 12 billion to HUF 125.7 billion.

Budget revenue from personal income tax fell HUF 11.2 billion to HUF 366.9 billion in the first two months of the year.

Revenues of budget-funded institutions, on the other hand, were HUF 49 billion above the comparable figure last year and the inflow of EU transfers was up by HUF 27.5 billion in forint terms.

On the expenditure side, spending of budget-funded institutions increased HUF 44.2 billion, but central budget support to local councils was down HUF 48.5 billion from the same period last year.

Home-building subsidies went up HUF 13.7 billion, while family-support spending dropped HUF 8.6 billion. Debt-servicing costs and interest payments of HUF 274 billion in the first two months was unchanged compared to the same period last year, Finance Ministry figures show. (MTI-Econews)