The deficit of the central sub sector of the state budget totalled HUF 511.1bn at the end of May 2015. Within that, the central state budget posted a deficit of HUF 588.5bn, while Social Security Funds and Extra Budgetary State Funds registered surpluses of HUF 47.0bn and HUF 30.4bn, respectively. In the month of May 2014, the deficit of the central sub sector of the state budget was HUF 681.7bn.

The monthly surplus posted by the central sub sector of the state budget in May 2015 was HUF 98.7bn, while in the corresponding period of the previous year this indicator was HUF 269.4bn. The discrepancy is mainly due to the difference in the amount of EU funds: revenues from EU funds within chapter administered appropriations were in May 2015 some HUF 70bn below those of 2014, which stems from a mismatch in the annual accounting schedule. On the other hand, the expenditures of professional chapter administered appropriations related to EU funds were some HUF 140bn higher compared to the same period of the previous year, thanks to the larger amount of outgoing payments.

The improved balance this year has been the result of higher tax revenues thanks to steady economic growth and a more favourable interest rate balance. Larger revenues were also the consequence of increased contribution payments stemming from wage hikes and tax morale improving measures (i.e. introduction of on-line cash registers).

Similarly to previous years, in 2015 – due to the difference in revenue and expenditure schedules – the monthly deficit figures are not time-proportional either: the amount of expenditures in the first half of the year traditionally exceeds that of revenues. The ESA deficit target for 2015, however, remains unchanged at 2.4 percent of GDP.

(Ministry for National Economy)