The deficit of the central sub-sector of the state budget was HUF 823.3bn at the end of June 2015. Within that, the central sub-sector closed the month with a deficit of HUF 868.1bn, while Social Security Funds and Extra Budgetary State Funds posted surpluses of HUF 15bn and HUF 29.8bn, respectively.

In comparison, the deficit of the central sub-sector of the state budget was HUF 813.7.2bn at the end of June 2015. The discrepancy is primarily the result of differences in EU funding: in June, revenues from EU funds within chapter-administered appropriations were 2015 some HUF 156bn below those of 2014, which stems from a change in the annual accounting schedule. On the other hand, the EU expenditures of professional chapter-administered appropriations were some HUF 200bn higher compared to the same period of the previous year, thanks to the increased rate of payment distribution. Also, in the case of Social Security Funds, pension expenditures were higher than in the previous year, thanks to the 1.8 percent rise in pensions.

The monthly deficit for June 2015 totalled HUF 312.2bn, compared to HUF 132bn deficit posted in the previous year. Interest rate expenditures were some HUF60bn higher compared to the same period of the previous year, owing to differences in interest payment schedules during the course of the year.

Steady economic growth led to higher tax revenues resulting from an increase in contributions due to the higher volume of wages paid out and the success of measures aimed at improving taxpayer morale (e.g. the introduction of on-line cash registers).

It must be underlined that – similarly to trends in former years – deficit figures are not time-proportional: expenditure typically exceeds revenue in the first half of the year. The ESA deficit target for 2015 remains at 2.4 percent of GDP.

(Ministry for National Economy)