Deficit as a proportion of GDP was 1.1% in the 1st quarter of 2018
The general government sector closed the 1st quarter of 2018, according to preliminary data, with a deficit of HUF 115.5 billion, representing 1.1% of GDP. The balance deteriorated by HUF 402.3 billion, or by 4.2 percentage points as a proportion of GDP compared to the same period of the previous year. The change in the balance was due to a larger increase in expenditures than in revenues.
In the 1st quarter of 2018 compared to the same period of 2017:
General government sector’s revenue was HUF 4,157.7 billion and its expenditure HUF 4,273.2 billion.
Revenues grew by HUF 241.7 billion or by 6.2%. Revenues from taxes on income rose byHUF 60.3 billion (by 9.5%). Taxes on production increased by HUF 138.4 billion (by 9.0%), within which VAT revenues rose by HUF 80.6 billion (by 10.1%). Social contributions were HUF 65.8 billion (5.7%) higher than a year earlier. Other revenues, consisting mainly of EU transfers, decreased by HUF 24.0 billion or by 4.2%.
Expenditures increased by HUF 644.0 billion or by 17.7%. The growth in the case of paid compensation of employees was HUF 118.8 billion (12.3%) and regarding gross fixed capital formation HUF 29.3 billion (12.9%). Intermediate consumption went up by HUF 47.4 billion (by 9.2%) and social benefits other than social transfers in kind by HUF 63.6 billion (by 5.5%). Other expenditures, consisting mainly of current and capital transfers, increased by HUF 404.7 billion (by 80.9%). At the same time interest expenditures of the general government sector lowered by 19.8 billion (by 7.2%).