The finance ministry has revealed that Hungary’s cash flow-based budget deficit, excluding local councils, was HUF 2,922.2 billion at the end of October. “The government is continuing its crisis management based on support for families, tax cuts and investment incentives…” the ministry said. “Revenues have been significantly influenced by employer preferences rolled out because of the coronavirus pandemic, higher wage outflows and an increase in average earnings,” it added. The central budget deficit was HUF 2,704.4 billion at the end of October, while the social insurance funds were 265.1 billion in the red. Separate state funds had a surplus of HUF 47.3 billion. The deficit widened by HUF 630.2 billion from a month earlier.
Meanwhile, the Central Statistical Office (KSH) said on Tuesday that consumer prices in Hungary rose by an annual 6.5 percent in October, up from 5.5 percent in the previous month. Driven by higher cigarette, spirits and vehicle fuel prices, CPI is at the highest level in years and well outside of the 2-4 percent tolerance band of the National Bank of Hungary (NBH).
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