The latest growth and investment data indisputably prove that Government measures have been successful. Hungary’s fiscal policy has been instrumental in reaching economic and social goals.

The central sub sector of the state budget accumulated a deficit of HUF 213.4bn at the end of March 2017. Within that, the central budget, Social Security Funds and Extra-Budgetary State Funds closed the period with deficits of HUF 180.1bn, HUF 85.9bn and HUF 52.6bn, respectively. In the first five months of 2016, the central sub sector of the state budget had a deficit of HUF 13.2bn, while the same sector accumulated a deficit of HUF 91.9bn by the end of May 2017.

Fiscal data were mainly determined by Government measures which have helped the economy reach a GDP growth rate of 4.2 percent in Q1 2017, the highest figure in three years. One of the main contributing factors was the 34 percent growth in investment.

Employment and consumption growth has resulted in higher tax revenues (mainly from VAT, personal income tax and payroll taxes). Among one-off revenue items, those related to the sale of agricultural land must be noted as well as the delayed repayment of fiscal disbursements for EU-funded projects.

(Ministry for National Economy)