Published on: 3 January 2019

The deficit of the general government sector as a proportion of GDP was 0.4% in the first three quarters of 2018

The deficit of the general government sector in the 1st–3rd quarters of 2018 was HUF 110 billion, representing 0.4% of GDP. The balance improved by HUF 54.4 billion, or by 0.2 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 revenues than in expenditures.

In the 1st–3rd quarters of 2018 compared to the same period of 2017:

General government sector’s revenue was HUF 13,602.9 billion and its expenditure HUF 13,712.9 billion.

Revenues grew by HUF 1,309.5 billion or by 10.7%. Social contributions rose by HUF 187.8 billion (by 5.3%). Revenues from taxes on income were HUF 117.8 billion (6.0%) higher than a year earlier. The largest, HUF 561.1 billion (11.2%) increase was recorded in taxes on production, within which VAT revenues rose by HUF 371.2 billion (by 14.3%). Other revenues, consisting mainly of EU transfers, grew by HUF 443.2 billion (by 25.7%).

Expenditures increased by HUF 1,255.1 billion or by 10.1%. The growth in the case of paid compensation of employees was HUF 179.2 billion (5.9%), and regarding social benefits other than social transfers in kind HUF 193.8 billion (5.7%). Other expenditures, consisting mainly of current and capital transfers increased by HUF 471.6 billion (by 22.7%) and gross fixed capital formation went up by HUF 428.2 (by 39.3%). Intermediate consumption grew by HUF 13 billion (by 0.6%). On the other hand interest expenditures of the general government sector decreased by HUF 30.7 billion (by 3.8%).

In the 3rd quarter of 2018 compared to the same period of 2017:

The general government sector had a deficit of HUF 75.8 billion, which was 0.7% of GDP. The balance improved by HUF 298 billion or by 3.2 percentage points compared to the same period of the previous year.

Revenues increased by HUF 538.6 billion (by 13.1%).

Expenditures were HUF 240.6 billion (5.4%) higher than a year earlier.