Photo: Wikipedia

Budget posts HUF 1,704 billion deficit in February

Hungary's cash flow-based budget, excluding local councils, posted a deficit of 1,704 billion forints (EUR 4.321bn) at the end of February, the finance ministry said on Friday, citing preliminary data.

The central budget had a deficit of 1,760 billion forints and the social security funds were 23.5 billion forints in the red but separate state funds were 79.0 billion forints in the black.

The budget had a 54.4 billion forint surplus in January.

The ministry noted that revenue in February was “several hundred billion” forints lower than in an average month because of VAT seasonality.

It said that the fiscal impact of pension payments, including an annual bonus equivalent to a full month’s pension, had reached 1,041 billion forints in February.

In addition to covering extraordinary expenditures, the budget has ensured the resources for protecting pensions and family subsidies as well as maintaining regulated household utilities prices, the ministry said.

“The government’s aim is to gradually reduce the deficit and state debt,” it added.

The government targets a deficit of 4.5 percent of GDP in 2024, 3.7 percent in 2025 and 2.9 percent in 2026, the ministry said.

The full-year deficit target in the 2024 Budget Act is 2,514.8 billion forints.

Leave a Reply