Government sector deficit 3.7 percent of GDP in Q3

In the 3rd quarter of 2023 compared to the same period of 2022 the general government sector had a deficit of HUF 701 billion representing 3.7% of GDP. The balance improved by HUF 264 billion, or by 2 percentage points, year-on-year.

Revenues increased by HUF 861 billion (by 12.7%).

Expenditures grew by HUF 597 billion (7.7%).

According to preliminary data the deficit of the general government sector was HUF 2,997 billion, 5.4% of the GDP in the 1st–3rd quarters of 2023.

The revenue of the general government sector was HUF 23,027 billion, the expenditure amounted to HUF 26,024 billion.
In the 1st–3rd quarters of 2023, compared to the same period of 2022:

The balance deteriorated by HUF 1,363 billion, or by 2.1 percentage points in proportion of GDP compared to the same period of the previous year.

Revenues increased by HUF 2,467 billion or by 12%. The largest, HUF 1,107 billion (12.8%) increase in value was recorded in taxes on production proceeds, within it the revenue growth from surtaxes and local taxes on company sales was significant. Revenues from taxes on income surpassed by HUF 647 billion (19.4%) the previous year’s level. Social contributions increased by HUF 697 billion (by 14.8%). The change of other revenues is marginal, these went up by HUF 18 billion (0.5%).

Expenditures increased by HUF 3,829 billion or by 17.3%. The growth in case of paid compensation of employees was HUF 231 billion (4.6%). The rise regarding social benefits other than social transfers in kind was HUF 1,000 billion (19.9%), within it the amount spent on pensions increased by HUF 784 billion (22.3%). Intermediate consumption went up by HUF 516 billion (by 13.7%) and interest expenditures doubled, reaching HUF 2,469 billion. Gross fixed capital formation decreased by HUF 190 billion (by 8.4%). Other general government sector expenditures went up by HUF 1,044 billion (by 21.4%).