Hungary: Government Sector Surplus in Q2 2025

Hungary's government sector had a HUF 480 billion surplus in the second quarter, equivalent to 2.2% of GDP, data released by the country's Central Statistical Office (KSH) on Wednesday show.

The deficit of central government amounted to HUF 535 billion, while local governments and social security funds had HUF 137 and 88 billion surpluses. In the 2nd quarter of 2025 the central government had HUF 521 billion surplus, the local government had HUF 45 billion deficit and the social security funds had HUF 4 billion surplus.

In the 1st half of 2025:
The general government sector’s revenues were HUF 18,711 billion and its expenditures HUF 19,021 billion.

In the 1st half of 2025, compared to the same period of 2024:
Revenues went up by HUF 1,713 billion or by 10.1%. The largest, HUF 523 billion (7.7%) increase in value was recorded in revenues from taxes on production. VAT revenue growth was HUF 416 billion (11.7%). Taxes on income increased by HUF 475 billion (15.7%). Social contributions increased by HUF 381 billion (9.2%), compared to the previous year. Other revenues went up by HUF 333 billion (by 11%).

Expenditures increased by HUF 476 billion or by 2.6%. The growth in case of paid compensation of employees was HUF 435 billion (10.7%). Social benefits other than social transfers in kind increased by HUF 262 billion (5.7%). Intermediate consumption went up by HUF 172 billion (by 5.6%) and gross fixed capital formation rose by HUF 27 billion (by 2.5%). Interest expenditures decreased by HUF 217 billion (by 11.1%). Other general government sector expenditures were HUF 203 billion (by 5.4%) lower compared to the previous year.

The balance improved by HUF 1,237 billion, or by 3.1 percentage points as a proportion of GDP compared to the same period of the previous year.

In the 2nd quarter of 2025, compared to the same period of 2024:
Revenues increased by HUF 1,067 billion, by 11.8%.

In 2024:
The deficit of the general government sector in 2024 was HUF 4,090 billion, 5% of GDP, according to the 2nd preliminary data of the national accounts. HCSO reported the data to Eurostat, the Statistical Office of the EU, in compliance with the regulation on Excessive Deficit Procedure (EDP), according to the methodological requirements included in the European System of Accounts (ESA 2010). The debt of the general government sector at the end of 2024 – based on data of the National Bank of Hungary – was HUF 59,879 billion, 73.5% of GDP.