The state budget continues to pre-finance EU-funded projects and facilitate the realization of the Government’s economic policy objectives. This has led to a deficit of HUF 1639bn in the general government budget at the end of November 2017. The ESA deficit target of 2.4 percent of GDP, however, will be attained this year.

Within the above, the Central Budget and Social Security Funds accumulated deficits of HUF 1667.0bn and HUF 93.3bn, respectively, while Extra-Budgetary State Funds posted a surplus of HUF 121.3bn. The deficit in the month of November was HUF 220.8bn.

EU funded projects continue to be pre-financed by the state budget in order to ensure their successful implementation. The amount hitherto disbursed is some HUF 1925.2bn, and it is HUF 500bn more than the amount paid last year up to the end of November 2016.

The European Union, on the other hand, has only transferred HUF 381.7bn to Hungary’s state budget. Besides expenditures related to state functions and investment, 2.75 million old age and other pensioners received inflation-adjusted pension supplements and a pension premium, a one-off payment of up to HUF 12 000 per person enabled by the Government’s successful economic policy, in addition to the regular monthly benefit.

In comparison to the previous year, revenues from VAT and personal income tax as well as pension-, healthcare and labour market contributions increased substantially. This has mainly been the result of the six-year wage agreement concluded last year and job growth. Next year, the minimum wage and the guaranteed minimum wage are set to increase by 8 percent and 12 percent, respectively, after this year’s hikes of 15 percent and 25 percent. On the other hand, payroll taxes are to decline to 19.5 percent, a larger decrease than formerly planned.

(Ministry for National Economy)