budget budget deficit finance ministry

Budget Shows January Surplus; Full-year Gap Expected at 6.5% of GDP

MTI-Hungary Today 2021.02.08.

Hungary’s cash flow-based based budget, excluding local councils, had a 198.8 billion forint (EUR 556.8m) surplus at the end of January, the finance ministry said in a preliminary release on Monday.

The ministry said the January surplus is “not uncommon” and attributed it to seasonal effects.

The central budget had a 180.5 billion forint and the separate state funds a 22.4 billion forint surplus, but the social insurance funds were 4.1 billion forints in the red.

Hungary's State Debt-to-GDP Ratio Rises Above 2009 Crisis Level

As a consequence of the pandemic, Hungary’s gross government debt-to-GDP ratio jumped up to 81.2%, meaning that it broke a 25 year-record and has gone above the 2008/2009’s global crisis level. While the opposition blames the government, economic decision-makers are rather optimistic and say erasing the debt was a necessary step. Since the previous global […]Continue reading

The ministry added that the budget is expected to finish the year with a deficit equivalent to 6.5 percent of GDP, calculated according to the European Union’s accrual-based accounting rules.