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Hungary Set New Budget Record With Massive Third Quarter Surplus In 2015

Tamás Székely 2016.01.05.

The deficit of the Hungarian government sector in the first three quarters of 2015 was HUF 109.7 billion, 0.4% of GDP, the Central Statistical Office (KSH) said. The deficit was HUF 548.0 billion less or 2.3 percentage points lower as a proportion of GDP compared to the same period of the previous year. The lower-than-base-period deficit stemmed from revenues increasing at a higher rate than expenditures, KSH added.

The most interesting is that instead of some deficit, the Hungarian government sector posted a surplus of HUF 38.1 billion (0,5% of GDP) in the 3rd quarter of 2015. This is the best-ever quarterly data for Hungary, economic news portal porfolio.hu highlighted, adding that the 2015 balance “may be much better” than the budgeted 2.4% gap. Hungary’s 2015 budget deficit might be as low as 1.5% of GDP, according to the paper’s fresh estimation.

However, measuring budget deficit as proportion of a country’s gross domestic product (GDP) might be misleading. According to Joseph Stiglitz, GDP figures can tell a lot about the growth of the overall economy, but they are not adequate tool for describing the financial situation of the society. Analyzing the consequences of the 2008 financial crisis, the Noble-prize-winning economist came to the conclusion that GDP overlooks economic inequality, therefore they should not be use as the ultimate measure tool of finances.

via ksh.hu and portfolio.hu

 


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