Published on: 5 January 2021

Deficit as a proportion of GDP was 4.6% in the first three quarters

According to preliminary data, the deficit of the general government sector in the 1st–3rd quarters of 2020 was HUF 1,629 billion, 4.6% of GDP. The balance deteriorated year-on-year by HUF 1,405 billion, or by 4.0 percentage points as a proportion of GDP. The significant deterioration of the balance was due to the economic impact of the coronavirus pandemic and the regulations adopted for reducing these effects.

In the 1st–3rd quarters of 2020 compared to the same period of 2019:

The general government sector’s revenues were HUF 15,076 billion and its expenditures HUF 16,705 billion.

Revenues increased by HUF 142 billion or by 1.0%. Income tax revenues increased by HUF 57 billion or by 2.5%. Taxes on production went up by HUF 34 billion (by 0.5%) and VAT revenues grew by HUF 38 billion (by 1.2%). Social contributions declined by HUF 157 billion (by 3.8%). Other revenues increased by HUF 211 billion (9.2%).

Expenditures increased by HUF 1,547 billion or by 10.2%. The growth in case of paid compensation of employees was HUF 187 billion (5.3%) and regarding social benefits other than social transfers in kind it was HUF 261 billion (7.0%). Intermediate consumption went down by HUF 4 billion (by 0.2%). Interest expenditures rose by HUF 54 billion (by 6.9%). Gross fixed capital formation lessened, the change was HUF 80 billion (–4.2%). Other general government sector expenditures went up by HUF 1130 billion (by 43.0%) mainly due to the regulations adopted to reduce the economic impacts of the coronavirus pandemic.

In the 3rd quarter of 2020 compared to the same period of 2019:

The general government sector had a deficit of HUF 487 billion, representing 4.1% of GDP. The balance deteriorated by HUF 107 billion or by 0.9 percentage points compared to the same period of the previous year.

Revenues increased by HUF 277 billion (by 5.6%).

Expenditures were HUF 384 billion (7.2%) higher than a year earlier.