In 2020 the deficit as a proportion of GDP was 8.1%
According to preliminary data the deficit of the general government sector in 2020 was HUF 3,870 billion, 8.1% of GDP. The balance deteriorated by HUF 2,882 billion, or by 6.0 percentage points as a proportion of GDP compared to the previous year. The significant deterioration was due to the economic impact of the coronavirus pandemic and to the regulations adopted for reducing these effects.
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 deficit of the general government sector was HUF 3,870 billion representing 8.1% of GDP. The debt of the general government sector at the end of 2020 – based on data of the National Bank of Hungary – reached HUF 38,408 billion, 80.4% of GDP.
In 2020 compared to 2019:
The general government sector’s revenues were HUF 20,775 billion and its expenditures HUF 24,644 billion.
Revenues increased by HUF 38 billion or by 0.2%. Income tax revenues increased by HUF 79 billion or by 2.5%. Taxes on production surpassed by HUF 184 billion (by 2.2%) the previous year’s level, VAT revenues grew by HUF 190 billion (by 4.2%). On the other hand social contributions declined by HUF 203 billion (by 3.6%) and other revenues lessened by HUF 20 billion (by 0.6%).
Expenditures increased by HUF 2,920 billion or by 13.4%. The growth in case of paid compensation of employees was HUF 194 billion (4.0%) and regarding social benefits other than social transfers in kind it was HUF 293 billion (5.7%). Intermediate consumption went up by HUF 66 billion (by 1.7%) and interest expenditures rose by HUF 67 billion (by 6.4%). Gross fixed capital formation grew by HUF 131 billion (by 4.5%). Other general government sector expenditures surpassed the previous year’s level by HUF 2,169 billion (by 56.3%) mainly due to the regulations adopted to reduce the economic impacts of the coronavirus pandemic.
In the 4th quarter of 2020 compared to the same period of 2019:
The general government sector had a deficit of HUF 2,276 billion, representing 18.1% of GDP. The balance deteriorated by HUF 1,515 billion or by 11.9 percentage points compared to the previous year.
Revenues increased by HUF 14 billion (by 0.2%).
Expenditures were HUF 1,529 billion (23.4%) higher than a year earlier.