In spite of unfavorable external factors resulting from the war, Hungary’s economy has returned to a growth path.
“Even under great pressure, the Hungarian budget will guarantee the protection of pensions and family subsidies, as well as ensure the resources necessary to maintain reduced utility prices,” the finance ministry said in a detailed reading of data. The budget deficit reached 107.8 billion forints for the month of June alone which is the best indicator in 22 years, the ministry said. Hungary’s cash flow-based budget deficit reached 2,656.4 billion forints (EUR 6.8bn) at the end of June. Social security funds were 161.9 billion in the red, but separate state funds were 145.6 billion forints in the black, the ministry said. Interest expenditures, which included large payments on retail government securities, came to 2,009.5 billion forints in January-June, up 649.4 billion from the same period a year earlier, it said. Expenditures for European Union-funded programmes reached 945.7 billion forints, while transfers from Brussels came to 578.2 billion forints, it added. The ministry affirmed the government’s commitment to improving balance indicators and said strengthening economic performance and improving fiscal trends would also help achieve the deficit target of 4.5% of GDP.