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According to preliminary data released by the Hungarian Central Statistical Office (KSH) on Tuesday, the government sector recorded a deficit of HUF 1,068B (EUR 2.6B) in the first quarter of 2024. Equivalent to 5.4 percent of GDP. This marks an improvement of HUF 611B (EUR 1.5B) compared to the same period last year, representing a 4.0 percentage point decrease as a share of GDP.
Picture: ksh.hu
According to European Union rules, the deficit-to-GDP ratio must be below 3 percent.
Government sector revenue totaled HUF 7,952B (EUR 20B) , showing a notable increase of HUF 758B (EUR 1.9B) or 10.5 percent. Production taxes contributed HUF 160B (EUR 404M), up by 5.3 percent from the previous year. VAT (Value Added Tax) revenue increased by HUF 89B (EUR 224.8M), or 5.6 percent. Income tax revenues saw a significant rise of HUF 206B (EUR 520.6M), equivalent to a 17.1 percent increase. Social security contributions also grew by HUF 246B (EUR 621.7M), marking a 14 percent rise.
Other revenues saw an uptick of HUF 145B (EUR 366.5M), an increase of 12.2 percent.
On the expenditure side, the government spent HUF 9,020B (EUR 22.8B), which was an increase of HUF 146B (EUR 369M) or 1.7 percent compared to the previous year. Compensation of employees rose by HUF 266B (EUR 672.2M), an increase of 15.5 percent, while social benefits in cash increased by HUF 245B (EUR 619M), or 10.7 percent. Intermediate consumption decreased slightly by HUF 36B (EUR 90.9M), down 2.8 percent.
However, interest expenditure surged by HUF 249B (EUR 629M), representing a 33.5 percent increase.
Gross fixed capital formation declined by HUF 29B (EUR 73.2M), a decrease of 6.8 percent. Other government sector expenditures were significantly lower by 22.7 percent compared to the previous year, amounting to HUF 549B (EUR 1.3B).
Overall, the report highlights both increases in revenue and expenditures, with certain categories showing substantial growth or decline compared to the previous year.
Via MTI; Featured image: Pixabay