Deficit as a proportion of GDP was 1.9% in 2015
The deficit of the general government sector was HUF 625.5 billion, 1.9% of GDP in 2015 according to preliminary data, which was HUF 113.6 billion less or 0.4 percentage points lower as a proportion of GDP than the deficit in 2014. The lower-than-base-period deficit stemmed from revenues increasing at a higher rate than expenditures.
HCSO reported the data to Eurostat, the Statistical Office of the EU, in compliance with the regulation on the 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 25,394 billion, 75.3% of GDP at the end of 2015.
In 2015 compared to 2014:
The general government sector’s deficit of HUF 625.5 billion (1.9% of GDP) was HUF 113.9 billion less or 0.4 percentage point lower as a proportion of GDP.
Revenues grew by 7.7% or by HUF 1,173.2 billion. Revenues from taxes on production and imports increased by HUF 436.7 billion (by 7.3%) – within which VAT payments went up by 9.8% –, and actual social contributions were up by HUF 279.3 billion or by 6.7%. The HUF 272.1 billion (9.2%) increase of other revenues was due to the growth of EU transfers. Taxes on income contributed to the increase of revenues by HUF 182.6 billion (8.3%).
Expenditures were up by HUF 1,059.6 billion, i.e. by 6.6%. Other expenditures rose by HUF 595.2 billion (by 23.2%) and expenditures on gross fixed capital formation by HUF 473.8 billion (by 26.7%), which were the largest growths, the payments of EU funds representing a decisive part in both items. Compensation of employees went up by 7.7%, while there were decreases in interest payments (7.0%), intermediate consumption (6.0%) and social benefits other than social transfers in kind (0.4%).
In the 4th quarter of 2015 compared to the same period of 2014:
The deficit of the general government sector was HUF 143.4 billion, 1.7% of GDP, which was 0.3 percentage point lower as a proportion of GDP than a year earlier.
The revenues of the general government sector increased by HUF 693 billion or by 15.9%. Revenues from taxes on production and imports grew by HUF 230.1 billion (by 14.4%), other revenues, including EU funds, by HUF 188 billion (by 17.9%) and taxes on income by HUF 183.6 billion (by 30.9%). Actual social contributions increased by 8.2%.
Expenditures went up by HUF 728.6 billion or by 16.4%. Of this growth the (75.8%) increase of other expenditures amounted to HUF 438 billion – resulting from the payments of EU funds – and the growth of expenditures on gross fixed capital formation to HUF 288.9 billion (41.1%). Compensation of employees saw an increase of 9.0%, while reductions were measured in interest payments (6.8%), intermediate consumption (4.4%) and social benefits other than social transfers in kind (1.8%).