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The Finance Ministry confirmed Tuesday that RRF pre-financing accounted for HUF 2.19 tln of the monthly shortfall. Without those expenditures, the August deficit would have been HUF 124.3 bln, the ministry said.
The ministry expects revenue associated with the RRF-funded programs to arrive in December.
Prime Minister Péter Magyar had warned a week earlier that pre-financing EU projects would produce an “extremely high” August deficit. In a Facebook post, he said EU funds would reach the State Treasury in the fall, putting the deficit on a downward path again.
The August shortfall brought the cumulative January-August deficit to HUF 5.17 tln. Revenue rose 4.2% year-on-year to HUF 27.46 tln, while expenditure increased 11.1% to HUF 32.63 tln.
The central budget recorded a deficit of HUF 5.04 tln through August, or HUF 2.86 tln when adjusted for RRF pre-financing. Social insurance funds posted a HUF 260.8 bln deficit, while separate state funds recorded a HUF 135.9 bln surplus.
The detailed release also showed revenue related to EU-funded programs of HUF 553.7 bln through August, compared with expenditure of HUF 1.59 tln.
Net interest expenditure totaled HUF 1.67 tln, down HUF 1.03 tln from the same period a year earlier.
Central budget debt increased by HUF 6.51 tln in January-August. Net forint issuance added HUF 5.32 tln and net foreign-currency issuance a further HUF 2.27 tln, while the stronger forint reduced the debt by HUF 1.06 tln.
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