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Hungary’s budget deficit narrowed to 2,443.3 billion at end of July

The finance ministry affirmed the government’s commitment to improving balance indicators and said the 4.5% GDP deficit target for the year was achievable.

The finance ministry said in a preliminary release of data that Hungary’s cash flow-based budget deficit narrowed to 2,443.3 billion forints (EUR 6.1bn) at the end of July on a 213 billion forint surplus for the month.

The central budget had a deficit of 2,473.2 billion forints at the end of the month and the social security funds were 138.5 billion in the red, but separate state funds were 168.4 billion in the black. The ministry attributed the July surplus to government measures taken this year, improving the room for fiscal manoeuvre by around 1,000 billion forints. Interest expenditures came to 2,217.0 billion forints in January-July, up 700.9 billion forints from the same period a year earlier. Revenue from taxes and contributions climbed 9.9% from the base period. The ministry affirmed the government’s commitment to improving balance indicators and said the 4.5% GDP deficit target for the year was achievable.