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Budget Deficit Edges up to HUF 2,270 Bn at End-September

MTI-Hungary Today 2020.10.08.

Hungary’s budget deficit, excluding local councils, reached 2,270.3 billion forints (EUR 6.5bn) at the end of September, edging up 9 billion forints from a month earlier, the finance ministry said in a preliminary release of data on Thursday.

The central budget had a 1,841.8 billion forints deficit and the social insurance funds were 441.8 billion forints in the red, but the separate state funds had a surplus of 13.3 billion forints.

The deficit has swelled this year because of pandemic defense spending, economic stimulus and pre-financing for European Union-funded projects.

The ministry said spending on medical equipment necessary for pandemic defense came to 581.4 billion forints by the end of September.

Payouts for European Union-funded projects reached 1,500.8 billion forints, while transfers from Brussels came to just 909.4 billion forints.

As Forint Weakens, Central Bank Profits Rise
As Forint Weakens, Central Bank Profits Rise

In the first half of the year, the National Bank of Hungary posted profits of HUF 217.2 billion, four times as much as during the same period last year (HUF 52.7 billion), and almost as much as during 2019 in its entirety.  Over 95% of this was profits made on exchange rates. Most of this […]Continue reading

The government has been pre-financing EU-funded projects for years to avoid backups and ensure all available monies are used up.