Preliminary data show that the deficit of the central sub sector of the state budget for 2014 narrowed to HUF 825.7bn, below the HUF 1151.5bn figure stipulated by the law. In 2013, deficit totalled HUF 932.8bn.

In December 2014, the deficit of the central sub sector was HUF 111.9bn, within which – thanks also to the technical rearrangement between the central budget and Social Security Funds – the central budget showed a surplus of HUF 101.1bn, while Social Security Funds and Extrabudgetary State Funds posted deficits of HUF 192.5bn and HUF 20.5bn, respectively.

Cash-flow data of the central budget at the end of December 2014 were more favourable than even prior Government expectations.

Within the central sub sector of the state budget, the central budget closed the year 2014 with a deficit of HUF 837.1bn, while Social Security Funds and Extrabudgetary State Funds accumulated surpluses of HUF 5.7bn and more than HUF 5.7bn, respectively.

In the analysis of changes in this year’s deficit it has to be noted that fiscal balance has been significantly influenced by extra revenues resulting from economic recovery, employment growth and the introduction of on-line cash-machines.

The revenues of the central budget in 2014 exceeded those in 2013, thanks mainly to higher-than-expected economic growth, improving employment situation and positive changes in household consumption. As a consequence of higher receipts from corporate tax, value-added tax, personal income tax and social contributions, tax revenues of the state were higher than they had been projected in the 2014 Budget Act.

Expenditures of the central budget in 2014 also exceeded those in the previous year, and thus – as a whole -- they were in line with Government projections. However, disbursements related to EU programmes were higher than the estimates for 2013 or 2014. In addition, subsidies for local governments – including those for debt repayment – and expenditures related to state assets also exceeded the payments of last year.

Data of the central sub sector of the state budget confirm the Government’s expectation that Hungary’s ESA deficit may be below 2.9 percent of GDP in 2014.

(Ministry for National Economy)