Government budget in positive territory with record surplus
Increased tax revenues helped push Hungary’s government budget into positive territory for the first time in years, with a record first-quarter surplus of HUF 11 billion, which was 0.1% of GDP, according to preliminary data released today by Hungary’s Central Statistics Office (KSH).
The HUF 301.6 billion balance improvement, or 3.6 percentage points as a proportion of GDP, was due to a decrease in expenditures and a growth in revenues, KSH said. Revenues were up by 3.1%, or HUF 112.1 bln, over the same period last year, KSH said.
The revenue increases were caused by an 18% rise in revenues from taxes on income due to a growth in payments from enterprises, a 5.4% rise in social contributions, and a rise of 1.5% in revenues from taxes on production, KSH explained.
This is the first time since 1999, as far back as KSHʼs current records show, that there has been a government surplus instead of a deficit.
Other forms of revenues decreased by 10%, particularly due to a reduction in EU funds, KSH said.
The revenues of the general government sector totalled HUF 3.7017 trillion and expenditures totalled at HUF 3.6906 trillion in Q1, KSH noted.
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