Thanks to the Government’s economic policy measures, fiscal revenues continued to rise in the first eight months of the year while expenditures related to various projects of social purposes have also increased. The ESA deficit target of 2.4 percent of GDP and the GDP growth target of above 4 percent for the year 2018 are realistic and attainable.

At the end of August 2018, revenues from VAT and PIT were up by HUF 169 .3bn and HUF 170.4bn, respectively, year-on-year. In addition, revenues from pension, health insurance and labour market contributions increased by HUF 187.6bn compared to the corresponding period of the previous year. This growth has been driven by improved economic transparency, rising economic performance, dynamic jobs and wage growth.

On the expenditure side, projects financed entirely from state funds must be highlighted, such as reconstruction works on public roads, the Modern Cities Programme, the Healthy Budapest Programme and various corporate support schemes. By the end of August 2018, expenditures related to EU-funded projects totalled HUF 1388.5bn, while funds received from Brussels have come only to HUF 183bn. With regard to the end-of-August balance it must be noted that family benefits of HUF 30.7bn due in September, such as the family allowance, were transferred to beneficiaries by the Treasury as early as the last summer week.

In the period January-August 2018, the central sub sector of the state budget accumulated a deficit of HUF 1646.2bn. Within that, the deficit of the central budget totalled HUF 1708.0bn, while Extra-Budgetary State Funds and Social Security Funds posted surpluses of HUF 21.8bn and HUF 40.0bn, respectively. In the month of August, the central sub sector had a deficit of HUF 155.3bn.

(Ministry of Finance)