Geneneral Government Deficit Reaches HUF 3,667.7 Billion

Hungary's general government deficit reached HUF 3,667.7 billion at the end of October, 76.8% of the full-year target, the Ministry of National Economy said in a preliminary release of data on Monday. The deficit in the budget is over 16% larger compared to October last year.

The central budget gap reached HUF 3,616.2 billion and the social insurance funds were HUF 135.5 billion in the red, but separate state funds had a surplus of HUF 84.0 billion, according to the ministry.

Alone in the month of September, the general government deficit came to HUF 339.0 billion.

Interest expenditures came to HUF 3,785.6 billion in January-October, HUF 587.1 billion more than in the base period.

Revenue from tax and contributions climbed 8.0%. Revenue from taxes on consumption rose 9%.

Expenditures on transportation and public utilities reached HUF 2,110.2 billion, up HUF 372.7 billion from the same period a year earlier, boosted by road upgrades, spending on waterworks infrastructure and expenditures related to the regulated utilities price scheme for households, the ministry said.

Spending on pensions and pension-like benefits reached HUF 6,072.0 billion and spending on curative and preventive care came to HUF 2,413.8 billion, both higher than in the base period.

In the ministry's view, "Hungary's finances are in order and the budget is stable, allowing the government to ensure the resources necessary for measures to support families, pensioners, young people and businesses."

The ministry said that Hungary's government was maintaining fiscal discipline by ensuring the budget deficit, relative to GDP, narrowed from year to year, and state debt levels stayed on a sustainable path. It added that Hungary could not be allowed to fall under an excessive deficit procedure again and that the primary balance should remain close to zero.