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Public debt has fallen more than expected, and last year’s deficit target has been met, Finance Minister Mihály Varga announced on his Facebook page. “The budget deficit was in line with plans at 4.9 percent of GDP last year, and including the gas reserves it was 6.1 percent,” he said.
Finance Minister Mihály Varga wrote on his website that public debt fell more sharply than previously expected in 2022, with its ratio to gross domestic product improving to 73.5 percent from 76.8 percent in 2021. He added that the government will continue to improve its balance indicators this year, with further declines in public debt and lower deficits expected.
The Hungarian Central Statistics Office also released its report on the Hungarian economy, with preliminary data showing that the government sector deficit was HUF 1,825 billion (EUR 4.5 billion) in the first three quarters of 2022, amounting to 3.7 percent of GDP. In the first nine months of last year, government sector revenue was HUF 1,048 billion (EUR 2.6 billion), while expenditure was HUF 2,872 billion (EUR 7.1 billion).
According to the department, revenues increased by HUF 3,971 billion (EUR 9.9 billion), or 24.7 percent, mainly after production taxes and VAT proceeds. At the same time, expenditure also increased by HUF 3,605 billion (EUR 9 billion). In the third quarter of last year, the government sector deficit was HUF 932 billion (EUR 2.3 billion), or 5.4 percent of GDP.
Meanwhile, looking at the economic data of the Visegrád Group countries, we can see that in Poland, the ratio of national debt to gross domestic product is forecast to be 48.7 percent for 2022, and 45.13 percent in 2023. In the Czech Republic, a national debt ratio of 41.47 percent is expected for year 2022, and 41.22 percent in 2023 in relation to GDP. After Hungary, the second highest national debt can be found in Slovakia, where it is expected to be 60.51 percent for 2022 and 57.41 percent next year in relation to gross domestic product.
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