The MNB announced the June Inflation Report at an online press conference.Continue reading
The Hungarian economy has returned to growth, with the budget supporting pensions, family benefits, and rationing cuts. Strengthening economic performance aids in achieving the 4.5 percent deficit target, according to the Ministry of Finance (PM).
The budget closed May with a surplus of HUF 49B (EUR 124M), the most favorable 5th month since 2016, partly due to the European Commission’s payment of the teachers’ wage increase.
By the end of May 2024, the central government sub-system had a deficit of HUF 2,548.5B (EUR 64.5B). This included a deficit of HUF 2,559.7B (EUR 64.8B) in the central budget, a surplus of HUF 115.5B (EUR 292M) in the state’s earmarked funds, and a deficit of HUF 104.3B (EUR 264M) in social security funds. Interest expenditures reached HUF 1,760.6B (EUR 445.9M) by the end of May, an increase of HUF 659.4B (EUR 167M) from the same period last year due to changes in interest payments on retail bonds. Payments for pension benefits and preventive medical care also rose compared to the previous year, with pension benefits totaling HUF 2,848.4B (EUR 7.2B) and preventive medical care HUF 1,090.8B (EUR 2.7B).
EU funds continue to support the budget, with HUF 546.2B (EUR 1.3B) received and HUF 801.9B (EUR 2B) spent by the end of May.
Despite low tax rates, tax and contribution receipts were 9.9% higher than in the same period last year.
The government is committed to reducing the deficit and debt, rescheduling HUF 675B (EUR 1.7B) of public investment to meet the revised deficit target of 4.5 percent, while implementing significant development projects this year. The cash deficit of the central sub-system of the general government, part of the 2.9 percent ESA deficit included in the adopted budget law, amounts to HUF 2,514.8B (EUR 63B) The expected annual cash deficit for the revised deficit target of 4.5 percent is HUF 3,982B (EUR 10B), with the central sub-system deficit at the end of May representing 64 percent of this figure.
Central government revenue at the end of May was HUF 15,349.2B (EUR 38.8B), 6.7 percent higher than the previous year, while expenditure was HUF 17,897.7B (EUR 45.35B), 4.4 percent higher than the previous year.
Via MTI; Featured Image: Facebook / Pénzügyminisztérium