Hungary's government sector had a HUF 2,090 billion deficit in the first quarter, equivalent to 9.0% of GDP, data released by the Central Statistical Office (KSH) on Wednesday show.
The deficit was HUF 838 billion higher, or 3.1 percentage points higher as a proportion of GDP compared to the same period of the previous year.
In the 1st quarter of 2026, the balances by subsectors: The deficit of central government amounted to HUF 2,492 billion, while local governments and social security funds ended the first quarter with surpluses of HUF 373 and 28 billion, respectively.
In the 1st quarter of 2026:
The general government sector’s revenues were HUF 9,327 billion and its expenditures HUF 11,417 billion.
In the 1st quarter of 2026 compared to the same period of 2025:
Revenues went up by HUF 960 billion or by 11.5%. HUF 136 billion (3.9%) increase in value was recorded in taxes on production. VAT revenue growth was HUF 133 billion (7.1%). Revenues from taxes on income were HUF 171 billion (11.6%) higher than a year earlier. Social contributions increased by HUF 321 billion (by 14.6%). Other revenues increased by 331 billion (by 27.1%).
Expenditures increased by HUF 1,798 billion or by 18.7%. The increase in case of paid compensation of employees was HUF 841 billion (38.5%). Intermediate consumption increased by HUF 151 billion (by 10.4%). Social benefits other than social transfers in kind rose by HUF 404 billion (by 15.1%). Interest expenditures increased by HUF 5.9 billion, or 0.7%. Gross fixed capital formation fell back by HUF 134 billion (by 26.2%). Other general government sector expenditures increased by HUF 530 billion (by 27.8%).
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