Deficit as a proportion of GDP was 5.3% in the 1st half of 2020
According to preliminary data, the deficit of the general government sector in the 1st half of 2020 was HUF 1,219 billion, 5.3% of GDP. The balance deteriorated year-on-year by HUF 1,378 billion, or by 6.0 percentage points as a proportion of GDP. The significant deterioration of the balance was due to the economic effect of the coronavirus pandemic and the regulations adopted during the pandemic in Hungary.
In the 1st half of 2020, compared to the same period of 2019:
The general government sector’s revenues were HUF 9,823 billion and its expenditures HUF 11,042 billion.
Revenues decreased by HUF 140 billion or by 1.4%. The largest, HUF 111 billion (4.0%) decrease in value was recorded in social contributions. Taxes on production went down by HUF 69 billion (by 1.7%) within which VAT revenues declined by HUF 38 billion (by 1.8%). Revenues from taxes on income were HUF 19 billion (1.2%) lower than a year earlier. Other revenues increased by 62 billion (by 3.9%).
Expenditures increased by HUF 1,239 billion or by 12.6%. The growth in case of paid compensation of employees was HUF 227 billion (9.7%) and regarding social benefits other than social transfers in kind it was HUF 209 billion (8.5%). Intermediate consumption went up by HUF 136 billion (by 8.2%) and interest expenditures increased by HUF 38 billion (by 7.4%). Gross fixed capital formation decreased by HUF 18 billion (by 1.6%). Other general government sector expenditures went up by HUF 646 billion (by 37.5%).
In the 2nd quarter of 2020, compared to the same period of 2019:
The general government sector had a deficit of HUF 986 billion, representing 9.1% of GDP. The balance deteriorated by HUF 1,019 billion or by 9.4 percentage points compared to the same period of the previous year.
Revenues decreased by HUF 288 billion (by 5.5%).
Expenditures were HUF 730 billion (14.0%) higher than a year earlier.
In 2019:
The deficit of the general government sector in 2019 was HUF 973 billion, 2.0% 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 2019 – based on data of the National Bank of Hungary – was HUF 31,078 billion, 65.4% of GDP.