BUDAPEST: Hungary’s current account deficit was HUF 62.7 billion in July, less than a year earlier, partly because spending fell more than revenue in July, the Ministry for National Economy (NGM) announced today. The main differences compared to last year were in EU-related and interest expenditure.
The central budget deficit amounted to HUF 70.9 billion at the end of July, separate state funds had a HUF 2.9 billion surplus, while social security funds had a HUF 5.2 billion surplus, bringing the current account deficit to HUF 62.7 billion excluding local governments. The figure is lower than in recent years.
Central budget revenues were HUF 802 billion in July, HUF 54 billion less than a year earlier. Payments by economic entities were down 15%, while consumption-based tax revenue was HUF 40 billion lower. Meanwhile, payments by citizens rose to HUF 171 billion.
Company tax revenue was just HUF 3.1 billion this July, compared to HUF 43 billion a year ago. The Ministry did not comment the change.
Meanwhile, budget expenditure fell sharply, from HUF 941 billion in July 2015 to HUF 873 billion. Payments related to EU funding fell from HUF 179 billion to HUF 134 billion over a year, while interest payments were 30% lower at HUF 39 billion.
The January-July deficit stands at HUF 464.8 billion, the best seven-month cumulative deficit figure ever. Based on the data, the ministry said “the deficit target of 2%, according to EU methodology, set for this year remains realistic and attainable”.
