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Hungary deficit 0.7% of GDP in H1

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Staff Writer | October 5, 2016
The deficit of the general government sector in the 1st half of 2016 was HUF 122.8 billion, 0.7% of GDP according to preliminary data, HUF 184.9 billion less, or 1.1 percentage points lower as a proportion of GDP compared to the same period of 2015.
Hungary
Hungarian economy   The decrease of the deficit
The decrease of the deficit was mainly due to declines in expenditures on investment – financed from revenues from the EU – and in interest expenditures, as well as to growths in actual social contributions and in revenues from taxes on income.

The general government sector’s deficit was HUF 122.8 billion, 0.7% of GDP, HUF 184.9 billion less, or 1.1 percentage points lower as a proportion of GDP compared to a year earlier.

Following a decrease of HUF 377.3 billion, expenditures on investment fell to the half of that in the same period of the previous year as a consequence of the completion of EU projects.

The general government sector’s expenditures on interests were also cut, by HUF 33.2 billion (by 5.5%).

Out of revenues, actual social contributions were HUF 163.8 billion (7.6%) higher and revenues from taxes on income HUF 140.5 billion (13%) more than a year earlier, the latter mainly resulting from payments from the recipients of tax credit for growth.

Other revenues, including mostly EU transfers, became 470.6 billion forints (33%) lower. Taxes on production were up by HUF 76.0 billion or 2.6%.

The government sector spent HUF 95.5 billion (5.5%) more on the compensation of employees and HUF 29.3 billion (1.3%) more on social benefits other than social transfers in kind.

In the 2nd quarter of 2016 compared to the same period of 2015:

The deficit of the general government sector was HUF 61.4 billion, 0.7% of GDP, HUF 9.6 billion more, or 0.1 percentage point higher than a year earlier. Revenues lessened by HUF 142.8 billion, or 3.6%. Expenditures were HUF 133.2 billion (3.3%) lower than a year earlier.

In the year 2015 as a whole:

The deficit of the general government sector was HUF 533.9 billion, 1.6% of GDP in 2015 according to the 2nd preliminary data of national accounts. The debt of the general government sector – based on data of the National Bank of Hungary – was HUF 25,402 billion, 74.7% of GDP at the end of 2015.


 

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