Hungary's 2022 deficit: 6.2% of the GDP

According to preliminary data reported by the country's Central Statistical Office (KSH), the deficit of the general government sector in 2022 was HUF 4,159 billion, 6.2% of GDP. The balance deteriorated year-on-year by HUF 209 billion, and improved by 0.9 percentage points as a proportion of GDP.

KSH says it 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 deficit of the general government sector was HUF 4,159 billion representing 6.2% of GDP. The debt of the general government sector at the end of 2022 – based on data of the National Bank of Hungary – reached HUF 48,837 billion, 73.3% of GDP.

In 2022:
The general government sector’s revenues were HUF 27,715 billion and its expenditures HUF 31,874 billion.

In 2022 compared to 2021:
Revenues increased by HUF 4,952 billion or by 21,8%. The largest, HUF 2,139 billion (22.1%) increase in value was recorded in taxes on production, within it, VAT revenues grew by HUF 1,231 billion (by 22.5%). Revenues from taxes on income surpassed by HUF 1,480 billion (47.8%) the previous year’s, mainly due to the income tax refund to families with children (the accrual-based accounting of the refund lowered the value of the base period). Social contributions increased by HUF 685 billion (by 11.8%). Other revenues went up by HUF 646 billion (15.5%).

Expenditures increased by HUF 5,161 billion or by 19.3%. The growth in case of paid compensation of employees was HUF 923 billion (15.8%), regarding social benefits other than social transfers in kind it was HUF 924 billion (15.5%). Intermediate consumption went up by HUF 604 billion (by 12.6%), interest expenditures increased by HUF 615 billion (by 49.5%). Gross fixed capital formation grew by HUF 59 billion (by 1.7%). Other general government sector expenditures went up by HUF 2,036 billion (by 37.6%), primarily due to purchasing special natural gas stock.

In the 4th quarter of 2022 compared to the same period of 2021:
The general government sector had a deficit of HUF 2,458 billion, representing 13.9% of GDP. The balance deteriorated by HUF 704 billion or by 2.1 percentage points compared to the previous year.

Revenues increased by HUF 801 billion (by 12.0%).

Expenditures were HUF 1,505 billion (17.8%) higher.