The central sub system of the state budget had a cash-flow-based surplus of HUF 35bn in the month of October 2014, thus total deficit declined to HUF 809.6bn by the end of the month. This figure constitutes 82.2 percent of full-year estimate.

Within the above, the central budget had a deficit of HUF 1027.3bn, while Social Security Funds and Extra Budgetary State Funds posted surpluses of HUF 184.5bn and HUF 33.2bn, respectively.

This year’s favourable deficit trend has mainly resulted from extra revenues generated by the economic rebound, improving employment and the introduction of on-line cash machines.

The amount of expenditures and revenues booked in the budget is not time-proportionate in 2014 either; therefore expenditures exceeded revenues in the first half of the year. In the second half of the year, however, the shortfall will only slightly increase and in some months – like in September and October – it may even decrease.

The ESA fiscal deficit target remains to be 2.9 percent of GDP for the whole year. Cash-flow data confirm that this goal is attainable in a safe manner.

(Ministry for National Economy)