Published on: 1 July 2020

The GDP proportionate deficit was 1.5% in the 1st quarter

The deficit of the general government sector in the 1st quarter of 2020 was HUF 180 billion, 1.5% of GDP according to preliminary data. The balance deteriorated by HUF 309 billion, or by 2.6 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 2020 compared to the same period of 2019:

The general government sector’s revenues were HUF 4,807 billion and its expenditures HUF 4,987 billion.

Revenues went up by HUF 114 billion or by 2.4%. HUF 53 billion (2.8%) increase in value was recorded in taxes on production, within which VAT revenue growth was HUF 27 billion (2.7%). Revenues from taxes on income were HUF 9.8 billion (1.3%) higher than a year earlier. Social contributions decreased by HUF 6.8 billion (by 0.5%). Other revenues increased by 59 billion (by 8.7%).

Expenditures increased by HUF 423 billion or by 9.3%. The growth in the case of paid compensation of employees was HUF 67 billion (6.0%), regarding intermediate consumption it was HUF 63 billion (8.5%). Social benefits other than social transfers in kind went up by HUF 82 billion (by 6.7%) and interest expenditures by HUF 24 billion (by 9.2%). Other general government sector expenditures grew by HUF 220 billion (by 25.8%), mainly due to the growth in investment grants. Gross fixed capital formation decreased by HUF 32 billion (by 8.9%).