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Hungary: October deficit better than expected

In October, the budget deficit –counted without municipalities’ finances- will be Ft 31.9 billion, projected the Finance Ministry (PM).

In October there would have been a Ft 25 billion surplus in the budget but these were spent at paying November wages and family allowances sooner, at the end October. The PM now expects a deficit of Ft 1479.9 billion for the whole year -Ft 50 billion less than it was planned-, which represents 5.8% of GDP the against previously planned 6.0%, PM secretary Miklós Tátrai announced.

The budget deficit prognosis for 2007, calculated with the municipalities, is 6.2% of the GDP, less than the earlier prognosticated 6.3%, while the ESA 95 (European System of Accounts) deficit is expected to come at 6.4% of GDP as against 6.8% targeted in the convergence program.

The Ft 183.3 billion budget deficit in September was decreased by the Ft 13.7 billion surplus of social insurance funds and the Ft 4.7 billion surplus of state funds. In the end, deficit figures came to Ft 164.9 billion, Ft 35 billion less than the PM’s forecast. (Gazdasági Rádió, Magyar Hírlap, Napi Gazdaság)