Published on: 1 October 2019

Surplus as a proportion of GDP was 1.3% in the 1st half of 2019

According to preliminary data the surplus of the general government sector in the 1st half of 2019 was HUF 295 billion, 1.3% of GDP. The balance improved year-on-year by HUF 530 billion, or by 2.4 percentage points as a proportion of GDP. The improvement of the balance was due to a larger increase in revenues than in expenditures.

In the 1st half of 2019 compared to the same period of 2018:

The general government sector’s revenues were HUF 9,843 billion and its expenditures HUF 9,548 billion.

Revenues went up by HUF 869 billion or by 9.7%. The largest, HUF 316 billion (8.6%) increase in value was recorded in taxes on production, within which VAT revenues grew by HUF 186 billion (by 9.7%). Revenues from taxes on income were HUF 196 billion (14.1%) higher than a year earlier. Social contributions rose by HUF 222 billion (by 8.6%). Other revenues increased by 133 billion (by 10.1%).

Expenditures increased by HUF 338 billion or by 3.7%. The growth in case of gross fixed capital formation was HUF 213 billion (24.4%), and regarding intermediate consumption HUF 88 billion (6.2%). Paid compensation of employees went up by HUF 112 billion (by 5.1%) and social benefits other than social transfers in kind increased by HUF 51 billion (by 2.1%). Interest expenditures grew by HUF 28 billion (by 5.8%). Other general government sector expenditures were reduced by HUF 154 billion (8.5%).

In the 2nd quarter of 2019 compared to the same period of 2018:

The general government sector had a surplus of HUF 210 billion, representing 1.8% of GDP. The balance improved by HUF 359 billion or by 3.2 percentage points compared to the same period of the previous year.

Revenues increased by HUF 548 billion (by 11.7%).

Expenditures were HUF 189 billion (3.9%) higher than a year earlier.

In 2018:

The deficit of the general government sector in 2018 was HUF 976.5 billion, 2.3% 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 2018 – based on data of the National Bank of Hungary – was HUF 29,951 billion, 70.2% of GDP.

EDP notification of Hungary