The agency is positive about the government's efforts to reduce the budget deficit and public debt.Continue reading
The Hungarian economy has rebounded, and the budget is safeguarding pensions, family allowances, and maintaining cuts by rationing utilities.
This economic strengthening aids in achieving the 4.5% deficit target. In March, there was a deficit surge caused by low VAT (Value Added Tax) revenues and significant doubling of interest expenditures. The spike in interest payments were due to changes in retail bond interest payments, with some Premium Hungarian Government Bond (PMÁP) series due in the first quarter of the year.
The Ministry of Finance announced that the budget closed in May with a surplus of HUF 49B (EUR 124M; 1 EUR = 394HUF), the best May performance since 2016.
By the end of May, the central sub-system of public finances closed with a deficit of HUF 2,548.5B, including a central budget deficit of HUF 2,559.7B, a surplus of HUF 115.5B in earmarked funds, and a deficit of HUF 104.3B in social security funds.
The ministry highlighted that
pension benefits amounted to HUF 2,848.4B, while preventive medical care amounted to HUF 1,090.8B by the end of May.”
EU funds have continued to arrive steadily, with HUF 546.2B in revenue and HUF 801.9B in spending by the end of May.
Tax and contribution receipts were 9.9% higher than the same period last year, despite low tax levels.
The government is “committed to reducing the deficit and debt,” and has rescheduled HUF 675B of public investment to achieve the revised 4.5% deficit target, while implementing several thousand billions of development this year.
Via MTI; Featured Image: Pixabay