The state budget had for fifteen years not been as stable as it was recently. By the end of November 2016, the central sub sector of the state budget has accumulated a surplus of HUF 59.3bn. The favourable trend shows a prudent public finance policy, which benefits every Hungarian.

The figure at the end of November is comprised by deficits of HUF 10.9bn at the central budget and HUF 8.9bn at Social Security Funds, and by a surplus of 79.1bn at Extra-budgetary State Funds. In the period January-November 2016, the sector had a deficit of HUF 970.7bn, due to the pre-financing of EU funding. The difference between data of this year and last is the result of various factors: favourable economic processes, pro-transparency Government measures and ensuing higher tax revenues as well as the inflow of EU funds.

The Government has been working on further measures to improve the living standards of Hungarians. One of the latest steps was a six-year wage deal concluded in November, which is designed to boost wages already next year and reduce taxes for enterprises. The agreement is also expected to improve competitiveness and fuel economic growth, without risking fiscal stability in coming years.

(Ministry for National Economy)