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Gov’t financing requirement 3.7% of GDP in 12 months ending June

Hungary’s net general government financing requirement -- a measure close to the EU-conform ESA95 fiscal deficit -- was a preliminary 3.7% of GDP (Ft 980 billion in nominal terms) in the twelve months ending June 30, 2008, the National Bank of Hungary (MNB) reported on Monday. 

The ratio fell sharply from 4.0% in the twelve months ending March 30, and was down from 5.4% in the year 2007. The net government financing requirement in the Q2 reached Ft 178 billion or 2.6% of GDP, according to preliminary financial accounts figures, up from 0.7% of GDP in Q1. In contrast with its previous practice, the National Bank of Hungary did not publish a seasonally adjusted ratio for Q2. The quarterly deficits are strongly affected by seasonal factors.

Hungary’s gross consolidated state debt, calculated at nominal value using EU (Maastricht) methodology, was Ft 17,082 billion or 64.8% of the GDP of the year ending Q2 on June 30, 2008, according to the preliminary figures, dropping from Ft 17,328 billion or 67.1% of GDP at the end of Q1. (MTI-Econews)