Hungary’s cash-flow-based budget deficit, excluding local councils, came to 2,892.3 billion forints (EUR 7.2bn) at the end of June, the Finance Ministry confirmed in a detailed reading of data on Friday.
The deficit widened from 2,737 billion forints at the end of May. The full-year cash-flow-based budget deficit target is 3,152.7 billion. The central budget deficit came to 3,040.7 billion forints, while social security funds were 26.8 billion in the red, while the separate state funds had a surplus of 175.2 billion. The ministry noted that revenue from tax and contributions grew by an annual 13.5% in January-June. Revenue of budget-funded institutions, payments related to state-owned assets and revenue from European Union programmes were also higher than in the base period, it added. “In the current, unpredictable global economic environment, the result of the protracted Russia-Ukraine war and sanctions by Brussels, the government’s goal remains clear: to preserve Hungary’s stability, and to protect the utilities price cuts, family support, pensions and full employment,” the ministry said.
“Additionally, maintaining disciplined fiscal policy is of key importance. To that end, the government is standing by its 4.9% budget deficit target for this year and will continue to reduce the public debt,” it added.