Budget Deficit in 9 Months only 30 Percent of Full-Year Target
MTI-Hungary Today 2019.10.08.
Hungary’s cash flow-based budget, excluding local councils, ran a 303.6 billion forint deficit at the end of September, reaching 30.4 percent of the 998.4 billion full-year target, a preliminary release of data by the Finance Ministry shows.
The ministry noted that 464.4 billion forints of transfers from Brussels had arrived in September, giving the general government a monthly surplus of 207.2 billion forints.
In spite of the September windfall, European transfers for January-September, at 931.7 billion forints, were still short of the 1,077.4 billion of central budget payouts for EU-funded projects as the government continued to pre-finance such investments.
The ministry said revenue from VAT stood at 77.5 percent of the full-year target at the end of September. Revenue from personal income tax and from payroll tax reached 75.2 percent and 73.5 percent of the respective full-year targets, it added.
Budget expenditures on road and rail construction projects, on projects undertaken in the framework of the Modern Cities Programme and the Hungarian Village Programme, and on investment incentives, remained significant, the ministry said.
The full-year general government deficit, calculated according to the EU’s accrual-based accounting rules, “remains achievable”, it added.
In the featured photo: Finance Minister Mihály Varga. Photo by Zsolt Szigetváry/MTI