The budget balance has been stable, and the deficit target for 2016 -- 2 percent of GDP -- is realistic and attainable, Deputy State Secretary for Public Finances Péter Benő Banai told public news channel M1.

The Ministry is not expecting any amendment of the 2016 Budget Act, as extra revenues cover some higher expenditures; allocations are sufficient, for example, to finance the family housing allowance, the Modern Cities programme or wage hikes in the healthcare and public administration sectors, he said.

As Péter Benő Banai stated, the budget shortfall in June 2016 was attributable to interest payments on state debt and disbursements related to EU funds.

He stressed that favourable processes were set to continue, and the deficit in the first half of the year was historically very favourable, below 53 percent of the full-year target, whereas in past years this indicators was as high as 80-90 percent, or occasionally even above 100 percent.  He added that favourable employment trends and real wage growth have resulted in the surpluses posted by Social Security Funds and Extra-budgetary State Funds.

Although the rate of personal income tax has been reduced by 1 percentage point as of this year, to 15 percent, due to the higher number of people in employment and rising wages, in the first half of 2016 the revenues of the central budget from personal income taxes were up by HUF 13bn year-on-year, he pointed out.

(Ministry for National Economy)