Hungary deficit 0.7% of GDP in H1
The decrease of the deficit was mainly due to declines in expenditures on investment – financed from revenues from the EU – and in interest expenditures, as well as to growths in actual social contributions and in revenues from taxes on income.
The general government sector’s deficit was HUF 122.8 billion, 0.7% of GDP, HUF 184.9 billion less, or 1.1 percentage points lower as a proportion of GDP compared to a year earlier.
Following a decrease of HUF 377.3 billion, expenditures on investment fell to the half of that in the same period of the previous year as a consequence of the completion of EU projects.
The general government sector’s expenditures on interests were also cut, by HUF 33.2 billion (by 5.5%).
Out of revenues, actual social contributions were HUF 163.8 billion (7.6%) higher and revenues from taxes on income HUF 140.5 billion (13%) more than a year earlier, the latter mainly resulting from payments from the recipients of tax credit for growth.
Other revenues, including mostly EU transfers, became 470.6 billion forints (33%) lower. Taxes on production were up by HUF 76.0 billion or 2.6%.
The government sector spent HUF 95.5 billion (5.5%) more on the compensation of employees and HUF 29.3 billion (1.3%) more on social benefits other than social transfers in kind.
In the 2nd quarter of 2016 compared to the same period of 2015:
The deficit of the general government sector was HUF 61.4 billion, 0.7% of GDP, HUF 9.6 billion more, or 0.1 percentage point higher than a year earlier. Revenues lessened by HUF 142.8 billion, or 3.6%. Expenditures were HUF 133.2 billion (3.3%) lower than a year earlier.
In the year 2015 as a whole:
The deficit of the general government sector was HUF 533.9 billion, 1.6% of GDP in 2015 according to the 2nd preliminary data of national accounts. The debt of the general government sector – based on data of the National Bank of Hungary – was HUF 25,402 billion, 74.7% of GDP at the end of 2015. ■