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Budget Deficit Reaches Record Level at End-April

MTI-Hungary Today 2022.05.09.

Hungary’s cash flow-based budget deficit, excluding local councils, reached 2,635.6 billion forints (EUR 6.9bn) at the end of April, the finance ministry said in a preliminary release of data on Monday.

The central budget deficit reached 2,669.7 billion forints at the end of April. (According to economic news site Portfolio, such a steep fourth-month deficit is unprecedented.) The social security funds were 18.7 billion in the red, while the separate state funds had a surplus of 52.8 billion forints.

The deficit widened from 2,309.4 billion forints at the end of March.

The full-year cash flow-based general government deficit target is 3,152.7 billion forints.

Deficit in First Three Months Already at 73% of Full-Year Target
Deficit in First Three Months Already at 73% of Full-Year Target

The Finance Ministry said expenditures on home subsidies and on pensions were higher in January-March (before the elections) than in the same period last year.Continue reading

The ministry reiterated the government’s commitment to “improving balance indicators” in the release.

“In the unpredictable global economic environment caused by the war, Hungary’s stability must be preserved,” it said.

The ministry affirmed it expects the accrual-based general government deficit, relative to GDP, to reach 4.9 percent this year, while the year-end state debt ratio declines to 76.1 percent.

It calculates with GDP growth of 4.3 percent.

In the featured photo: Finance Minister Mihály Varga. Photo by Tamás Kovács


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