Deficit figures for the first quarter of 2015 are better than those for the same period last year. In March 2015, the deficit of the budget’s central subsystem was HUF 226 bn. Including this, the quarter closed with a deficit of HUF 536.7 bn., within which the central budget closed with a deficit of HUF 558.3 bn., while social security funds and earmarked state funds closed with surpluses of HUF 10.7 bn. and HUF 10.9 bn. respectively. Last year, the deficit for the first three months amounted to HUF 701.2 bn.

The difference between the end-of-March balances for this year and last year is the result on the one hand of higher tax revenues generated by constant economic growth (value added tax, excise duty, personal income tax, social contribution tax, duties), and on the other hand by a more favourable interest rate. Higher revenues are a result of increased payments generated by higher wages and of the success of measures taken to improve tax compliance (e.g. the introduction of online cash registers).

We need to highlight the fact that in March 2015 the expenditures of the National Family and Social Policy Fund were significantly higher than last year. The reason for this is that due to the Easter holidays, family and disability allowances for April were paid at the end of March, in order to ensure that everyone concerned received the amounts on time. Altogether these allowances totalled HUF 35 bn.; this amount has increased the spending figures for March expenditure, but will reduce those for April.

It is important to emphasise that, as in previous years, in 2015 expenditures and revenues are not being paid and received at the same time, and therefore the size of the deficit is not directly correlated with the time of year: in the first half of the year, expenditures are higher than revenues. The deficit target for 2015 calculated on the basis of EU methodology has not changed, and still accounts for 2.4% of the GDP.

(Ministry for National Economy)