The central sub sector of the state budget posted a surplus of HUF 14.2bn at the end of September 2014, the best figure in years.

Thanks to higher revenues, deficit fell to HUF 844.6bn at the end of September 2014, constituting 85.8 percent of full-year estimate. The deficit of the central budget was HUF 1036.8bn. Social Security Funds and Extra Budgetary State Funds closed the month with surpluses of HUF 157.9bn and HUF 34.3bn, respectively.

Following the trend in August, extra revenues resulting from the economic rebound, improving employment and the introduction of on-line cash machines had a favourable impact on the budget balance in September, too. These positive tendencies – contrary to the processes in previous years – tend to have a larger impact in the second half of the year.

The amount of expenditures and revenues is not time-proportionate in 2014 either; therefore expenditures exceeded revenues in the first half of the year. In the second half of the year, however, the shortfall will only slightly increase and in some months – like in September – it may even turn into a surplus.

The ESA fiscal deficit remains to be 2.9 percent of GDP for the whole year.

(Ministry for National Economy)