Government finances offer important information regarding the economic status of a country, within it about the general government sector. As a main rule in the European Union member countries the government sector deficit may be 3% of the GDP at most; government debt ratio maximum 60% of the deficit. In case these conditions - the conditions for introducing the Euro also - are not met by a member state the excessive deficit procedure is launched against that state. Statistics regarding the government sector offer, beside deficit and debt related data, information about sums of revenue and expenditure as well as about their content.
Balance of the general government sector in proportion of GDP
Changes in total revenues of organisations classified into the general government sector compared to the same period of the previous year, in a given quarter.
Balance of the general government sector expenditures in proportion of GDP
Changes in total revenues and expenditures of organisations classified into the general government sector compared to the same period of the previous year. We calculate the index based on current HUF-base data.
According to preliminary data, the deficit of the general government sector in the 1st–3rd quarters of 2020 was HUF 1,629 billion, 4.6% of GDP. The balance deteriorated year-on-year by HUF 1,405 billion, or by 4.0 percentage points as a proportion of GDP. The significant deterioration of the balance was due to the economic impact of the coronavirus pandemic and the regulations adopted for reducing these effects.
In 2019 the deficit of the general government sector was HUF 985 billion, 2.1% of the GDP based on the second preliminary data of the national accounts. According to data produced in compliance with the methodological requirements of the system of national accounts (ESA 2010) the revenues of the general government sector (HUF 20.7 thousand billion) increased by 8.9% and its expenditures (HUF 21.7 thousand billion) by 8.8%. The debt of the general government sector at the end of 2019 – based on data of the National Bank of Hungary – was HUF 31.1 billion, 65.4% of GDP.
The performance of the Hungarian economy grew by 2.2% in the 1st quarter of 2020, which is a significant tempo-decline compared to the 4-5% increase of the previous two years. The coronavirus epidemic, spreading worldwide by March, severely impacted Hungarian output in the second part of the month. Processes of the world economy, already tainted by tensions and negative expectations have been further damaged in January-February by the spread of the epidemic, impacting indirectly and unfavourably our national economy.
The volume of the gross domestic product (GDP) of Hungary was 4.6% larger in 2019 than a year earlier, and its value per capita approximated HUF 4.9 million. The deficit of the general government sector corresponded to 2.0% of GDP in 2019. Our publication contains in addition to the preliminary data for 2019 the final data for 2018, revised data for earlier years and the effects of a methodological change and routine revisions, the background to the calculations, too.