Over the past ten years, the state budget deficit in the month of February was lower than the current one only on two occasions. In the second month of the year, the deficit of the central sub sector of the state budget was HUF 256.9bn, well below the amount of HUF 407.9bn recorded in February last year.

The deficit in the initial two months of the year was also lower: in comparison to this year’s deficit of HUF 310.7bn, the fiscal shortfall amounted to HUF 483.3bn at the end of February 2014. Within this figure, the deficit of the central sub sector was HUF 379.8bn, while Social Security Funds and Extra Budgetary Funds posted surpluses of HUF 24.8bn and HUF 44.3bn, respectively.

The main reasons behind the discrepancy between the end-of February data in 2015 and 2014 are higher tax revenues (from VAT, excise tax, personal income tax) and lower interest costs. Indirect positive factors include higher wages and better taxpayer morale (due, for example, to the introduction of on-line cash machines).

Data for these two years also differ as a consequence of the assumption of the debt of local governments. Under this scheme, the Government has disbursed HUF 68.1bn for debt repayment.

In the year of 2015 – similarly to previous years – the accounting of revenues and expenditures is not time-proportional; the amount of expenditures exceeds that of revenues in the first half of the year.

(Ministry for National Economy)