The central sub sector of the state budget in the month of August 2014 posted a deficit of HUF 7.4bn, the lowest figure in ten years.

The deficit of the central sub sector of the state budget in January-August 2014 totals HUF 858.8bn. Within that, the central state budget registered a deficit of HUF 1053.1bn, while Social Security Funds and Extra Budgetary State Funds closed the period with surpluses of HUF 150.1bn and HUF 44.2bn, respectively.

In January-August 2013, the deficit of the central sub sector of the state budget was HUF 961.2bn.

The fiscal balance of the state budget at the end of August 2014 was improved by accelerating economic growth, a sounder employment situation and extra revenues owing to the operation of on-line cash registers. These positive tendencies are expected to have an even larger impact in the second half of the year.

In the first half of the year, the amount of expenditures typically exceed that of revenues, therefore deficit figures are not time-proportionate. The ESA95 deficit target for the entire year remains to be 2.9 percent of GDP.

(Ministry for National Economy)