The deficit of the budget’s central subsystem for months 1-6 2013 was HUF 813.7bn forints (EUR 2.62bn), which is equivalent to 82.6% of the planned annual ceiling.

Included in this figure, the central budget closed the first two quarters with a deficit of HUF 965.9bn (EUR 3.1bn), while social security financial funds and earmarked state funds closed the period with surpluses of HUF 114.5bn (EUR 368.5m) and HUF 37.7bn (EUR 120.3m), respectively.

The deficit of the budget’s central subsystem in the first two quarters of 2013 was HUF 721.7bn (EUR 2.32bn), which was equivalent to 88.7% of the planned annual ceiling.

The comparison of the two years is influenced by the effects of the teacher’s salary rise introduced as of September 2013 and the expenses of previously non-profit healthcare economic entities that began operating as budgetary authorities from 1 April 2013. In addition, funding provided to local authorities was significantly higher than during the same period in the previous year, including funding provided in the interests of repaying local government debt. However, the latter simultaneously improves the budget balance of the local government subsystem.

The end of June balance for this year was, however, improved by extra revenue resulting from accelerating economic growth, increasing employment and the introduction of online cash registers. In comparison to previous years, these positive tendencies are expected have a greater impact during the second half of the year.

Expenditure exceeded revenues during the first half of the year, and accordingly the level of the deficit is not pro rata. The planned annual deficit ceiling calculated according to EU methodology remains at 2.9% of GDP.

(Ministry of National Economy)