Tax revenues came in higher this year as formerly expected, thus the general government budget deficit is seen at 2.4 percent of GDP or even lower for the full year, Minister of State for State Finances Péter Benő Banai said.

As he stressed, “personal income tax, VAT and corporate tax revenues have repeatedly beaten estimates to such an extent that eventually they may be higher than the amended estimates of this year’s budget.”

Final fiscal ESA data of the 2015 Budget will become available only at the end of March 2016, he noted.

Péter Benő Banai pointed out that the reduction of VAT on home-building will next year have a favourable impact on GDP, employment data and the demographic situation in the longer term, but it fiscal effect can only be evaluated in a couple of months’ time.

(Ministry for National Economy)