Preliminary data show that the central sub system of the state budget accumulated a deficit of HUF 1218.6bn for the year 2015. Within that, the central state budget and Social Security Funds posted deficits of 1195.9bn HUF and HUF 24.9bn, respectively, while Extra Budgetary State Funds registered a surplus of HUF 2.2bn. In the final month of the year, the deficit of the central sub system was HUF 247.8bn.

The cash-flow deficit came in HUF 326.2bn above the amended estimate of HUF 892.4bn, as a consequence mainly of the delayed payment of some HUF 560bn of EU funding for chapter-managed appropriations due to ongoing negotiations with the European Commission on the utilization of funding for certain operative programmes. Excluding this factor, the cash-flow deficit is much more favourable than the estimate laid out in the Budget Act 2015. However, it has to be stressed that the delay of these revenues does not affect the accrual-based ESA budget balance: rightfully requested and expected revenues which have not been transferred to state accounts until year-end constitute real revenues.

In comparison to the year 2014, revenues from major taxes were up by HUF 848bn as a whole, thanks to the performance of Hungary’s economy and pro-transparency economic measures (such as on-line cash registers and the EKÁER). Expenditures of the central budget in 2015 – due mainly to EU programmes – increased by HUF 250bn in comparison to those of the previous year. As a whole, however, they were in line with Government projections.

In 2015, the interest payment balance of the central budget was up by HUF 38.1bn compared to the figure of the previous year, but it was also HUF 14bn higher in comparison to the estimate stipulated by law. This positive result could be realized despite the fact that in 2015 the Government assumed debts of some HUF 100bn, which amount had not been projected by the initially adopted Budget Act.

Detailed data on the local government sub sector and entities of the Government sector which do not belong to budgetary institutions as well as other data modified by methodological corrections will be published at the end of March, together with an official report scheduled to be sent to the European Union. However, preliminary revenue- and expenditure-side data confirm that the final deficit figure of the central sub sector of the state budget may be lower than the projected 2.4 percent of GDP estimate.

(Ministry for National Economy)