At the end of July 2015 the accumulated deficit of the central sub-sector of the state budget was HUF 894.1 billion. Within this, the central budget closed the month with a deficit of HUF 953.7 billion, while Social Security Funds and Extra Budgetary State Funds posted surpluses of HUF 36.7 billion and HUF 22.9 billion, respectively.

In comparison, for the same period last year the deficit of the central sub-sector of the state budget was HUF 851.4 billion. The discrepancy is primarily the result of differences in EU funding. Revenues from EU funds within chapter-administered appropriations were some HUF 280 billion below those of last year; this stems in part from a change in the annual accounting schedule, and in part from items which are still being discussed with and examined by the EU. This does not influence the balance according to the EU methodology, however, as funds rightfully requested from the Commission but which might not arrive by the end of the year can still be recognised as revenue. EU expenditures of professional chapter-administered appropriations were some HUF 170 billion higher compared to the same period last year, thanks to the increased rate of payment distribution.

The monthly deficit for June 2015 totalled HUF 70.8 billion, compared to HUF 37.7 billion in the same month last year. Here too, the discrepancy is mainly due to the considerable backlog of revenues from EU funds within chapter-administered appropriations compared to last July. On the upside, revenues stemming from value-added tax, excise duty, personal income tax and from social security contributions and payments were significantly higher than last year.

It must again be underlined that deficit figures are subject to time lags: expenditure typically exceeds revenue in the first half of the year. The ESA deficit target for 2015 remains at 2.4% of the GDP.

(Ministry for National Economy)