Deficit as a proportion of GDP was 0.1% in the 1st half of 2018
The deficit of the general government sector in the 1st half of 2018 was HUF 13.7 billion, representing 0.1% of GDP. The balance deteriorated by HUF 223 billion, or by 1.2 percentage points as a proportion of GDP compared to the same period of 2017. The change in the balance was due to a larger increase in expenditures than in revenues.
In the 1st half of 2018 compared to the same period of 2017:
General government sector’s revenue was HUF 8,964.5 billion and its expenditure HUF 8,978.2 billion.
Revenues grew by HUF 775.5 billion or by 9.5%. Social contributions rose by HUF 137.4 billion (by 5.8%). Revenues from taxes on income were HUF 104.0 billion (8.0%) higher than a year earlier. The largest, HUF 327.4 billion (10.0%) increase was recorded in taxes on production, within which VAT revenues rose by HUF 223.5 billion (by 13.2%). Other revenues, consisting mainly of EU transfers, grew by HUF 209.3 billion (by 17.2%).
Expenditures increased by HUF 998.5 billion or by 12.5%. The growth in the case of paid compensation of employees was HUF 142.9 billion (7.1%), and regarding social benefits other than social transfers in kind HUF 136.3 billion (6.0%). Other expenditures, consisting mainly of current and capital transfers increased by HUF 541.8 billion (by 44.7%) and gross fixed capital formation went up by HUF 156.3 (by 23.7%). Intermediate consumption grew by HUF 47.9 billion (by 3.8%). On the other hand interest expenditures of the general government sector decreased by HUF 26.8 billion (by –5.0%).
In the 2nd quarter of 2018 compared to the same period of 2017:
The general government sector had a surplus of HUF 22.6 billion, which was 0.2% of GDP. The balance improved by HUF 102.4 billion or by 1.1 percentage points compared to the same period of the previous year.
Revenues increased by HUF 490.6 billion (by 11.6%).
Expenditures were HUF 388.1 billion (9.0%) higher than a year earlier.
In 2017:
The deficit of the general government sector in 2017 was HUF 849.2 billion, 2.2% of GDP according to the 2nd preliminary data of the 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 included in the European System of Accounts (ESA 2010). The debt of the general government sector at the end of 2017 – based on data of the National Bank of Hungary – was HUF 28,095 billion, 73.3% of GDP.