news letterOur mobile application

Weekly newsletter

Budget Shortfall 30.4 pc / Full Year Target after Sept Surplus

MTI-Hungary Today 2019.10.22.

Hungary’s cash flow-based budget, excluding local councils, ran a 303.6 billion forint deficit at the end of September, 30.4 percent of the full-year target, the finance ministry confirmed in a second reading of the data on Tuesday.

The ministry noted that 464.4 billion forints of EU transfers had arrived in September, giving the general government a monthly surplus of 207.2 billion.

In spite of the September windfall, EU transfers for January-September, at 931.7 billion, 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.

Budget Deficit in 9 Months only 30 Percent of Full-Year Target

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 was 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 deficit target of 1.8 percent of GDP, calculated according to the EU’s accrual-based accounting rules, “remains achievable”, it added.

Featured photo by Zsolt Czeglédi/MTI