Last year, the budget continued to fully assure the resources required for the financing of public duties on the part of the state and the realisation of the government’s economic and social policy goals. According to preliminary estimates, the deficit to GDP ratio of public finances remained well under the level required by the European Union for the eighth year in succession, thanks to which the debt rate produced its most dynamic reduction of the past two decades.

The wage increases that are continuing as a result of the six-year wage agreement, the increase in the number of people in employment, the dynamic increase in consumption, the government measures introduced in the interests of whitening the economy and the elements of the Economy Protection Action Plan already introduced last year are expected to have resulted in a rate of growth of around 5% for the whole of the year. As a result, an additional 603.7 billion forints (EUR 1.82 billion) in consumer tax (VAT) revenues, 247.2 billion forints (EUR 746.8 million) in personal income tax revenues, 466 billion forints (EUR 1.4 billion) in pension, health insurance and job market contributions, and 64.5 billion forints (EUR 194.6 million) in additional excise duty revenues flowed into the state treasury compared to 2018. While the budget saw an influx of 1468.6 billion forints (EUR 4.43 billion) in European Union revenue, total expenditure on development projects was 1556.8 billion forints (EUR 4.69 billion). In 2019, major domestic funding was provided for the Modern Cities Programme and the Modern Village Programme, the modernisation of the road and rail system, and to improve the competitiveness of enterprises.

In addition to the above measures, resources provided for the realisation of various social goals may be highlighted, and particularly the launch of the Family Protection Action Plan, the most popular measure of which, the ‘baby shower’ subsidy, was utilised by 47 thousand families, while over three thousand families applied for and received the car purchasing subsidy for large families. Furthermore, the Home Creation Scheme (CSOK) also continued in an expanded form: so far, the Village CSOK programme has contributed to enabling five thousand families living in small settlements to acquire their own home. Last year, pension services once again retained their purchasing power, and thanks to the performance of the economy pensioners received a utility charge voucher in addition to the highest ever pension premium paid out to date. In addition, state salaries were increased in several fields, including a single end of year bonus for members of the armed services in recognition of their efforts.

The central subsystem of public finances ended December with a deficit of 452.7 billion forints (EUR 1.37 billion), resulting in a deficit of 1219 billion forints (EUR 3.67 billion billion) for the whole year. Of this, the central budget and the social security fund ended the year with a deficit of 1023.8 billion forints (EUR 3.01 billion) and 234.8 billion forints (EUR 708 million), respectively, which separate state funds achieved a surplus of 39.4 billion forints (EUR 119 million). Precise figures regarding the balance of the government sector based on EU methodology will be available once data on the local government subsystem and the business data of the related enterprises become available, and based on the Central Statistical Office’s indices to be published in March following the necessary methodological corrections.

(Ministry of Finance)