The deficit of the central sub sector of the state budget was HUF 609.8bn at the end of April 2015. Within that, the central sub sector closed the month with a deficit of HUF 643.6bn, while Social Security Funds and Extra Budgetary State Funds posted surpluses of HUF 23.6bn and HUF 10.2bn, respectively. In comparison, the deficit of the central sub sector of the state budget was HUF 951.2bn at the end of April 2014.

This favourable balance has been the consequence of higher revenues from taxes and duties resulting from dynamic economic growth as well as of an improved interest payment balance. Higher tax and duty revenues stemmed from the increase of contributions due to higher wages and the success of measures aimed at improving taxpayer morale (e.g.: the introduction of on-line cash registers.)

With regard to the analysis of the deficit it has to noted that due to public holidays at the beginning of May, the monthly payments of family and disability benefits were transferred at the end of April to avoid postponement. In addition, the Hungarian State Treasury transferred the amount required to cover the payment of wages at certain central budgetary institutions earlier than usual. These items have logically increased the amount of expenditures for the month of April and decreased those of May.

It has to be underlined that the monthly amounts of expenditures and revenues – similarly to trends in former years – are not even and thus deficit figures are not time-proportional: the amount of expenditures typically exceeds that of revenues in the first half of the year.

The ESA deficit target continues to be 2.4 percent of GDP. It is also confirmed by the amendment of the 2015 Budget Act.

(Ministry for National Economy)