Budget ends January with HUF 144 billion shortfall, Finance Ministry confirms

The central budget was 190.8 billion forint in the red, the social security funds had a surplus of 3.6 billion, while the separate state funds also posted a surplus, of 43.6 billion forints.

The ministry pledged to reduce the deficit and public debt further while ensuring resources for key government programmes. The economy should avoid a recession this year and grow by above 4 percent in 2024, it added.

The deficit is targeted at 3.9 percent of GDP this year, while the public debt is set to fall below 70 percent, it said.

The detailed reading of the data showed net revenue from VAT up 15.2 percent at 866.1 billion forints in January from the same month a year earlier. Net revenue from personal income tax rose by 102.1 billion to 371.9 billion.

Payouts for European Union programmes came to 151.1 billion forints in January, while transfers from Brussels totalled 34.6 billon.

Net interest spending came to 158.7 billion in January, 122.9 billion more than in the same month a year earlier.