Published on: 1 October 2015

Deficit was 1.1% as a proportion of GDP in the 1st half of 2015

The deficit of the general government sector was HUF 184.0 billion, 1.1% of GDP in the 1st half of 2015 according to preliminary data, which was HUF 324.4 billion less, or 2.1 percentage points lower as a proportion of GDP compared to the same period of 2014. The lower-than-base-period deficit stemmed from revenues increasing at a higher rate than expenditures. The deficit of the general government sector was HUF 23.1 billion in the 2nd quarter of 2015, 0.3% of GDP.

1st half of 2015 compared to the 1st half of 2014:

The general government sector’s deficit of HUF 184.0 billion (1.1% of GDP) was HUF 324.4 billion less, or 2.1 percentage points lower as a proportion of GDP.

The revenues of the general government sector were HUF 7,708.9 billion, while its expenditures HUF 7,893.0 billion.

Revenues were up by 8.5%. Growths were recorded in actual social contributions (5.3%), taxes on production and imports (4.0%) – within which VAT payments went up by 7.5% – and revenues from taxes on income (3.5%). Other revenues – mainly due to the increase of transfers from EU funds – rose by 29.0%.

Expenditures grew by 3.6%, within which the highest increase (26.8%) was measured for gross fixed capital formation due to investments realized from EU funds. Compensation of employees was up by 8.5%. Interests decreased by 7.2% and intermediate consumption by 3.7%, while social benefits other than social transfers in kind remained practically unchanged (0.1%).

In the 2nd quarter of 2015 compared to the same period of 2014:

The deficit of the general government sector was HUF 23.1 billion, 0.3% of GDP, which was HUF 280.3 billion less, or 3.5 percentage point lower as a proportion of GDP than a year earlier.

Revenues increased by 9.2%: growths were registered in actual social contributions (4.4%), taxes on production and imports (4.1%) – within which VAT payments rose by 8.2% – and taxes on income (2.9%).

Expenditures were up by 1.4%. Gross fixed capital formation rose by 34.5% and compensation of employees by 8.1%. Interests fell by 8.8%, intermediate consumption by 3.2% and social benefits other than social transfers in kind by 1.2%.

In the year 2014 as a whole:

The deficit of the general government sector was HUF 812.2 billion, 2.5 % of GDP in 2014 according to the 2nd preliminary data of national accounts. HCSO reported the data to Eurostat, the Statistical Office of the EU in compliance with the regulation on Excessive Deficit Procedure (EDP), according to the methodological requirements of the European System of Accounts (ESA 2010). The debt of the general government sector – based on data of the NBH – was HUF 24,514 billion, 76.2% of GDP at the end of 2014.

EDP notification of Hungary