The deficit in proportion of the GDP was 6.1% in the first quarter
According to preliminary data the deficit of the general government sector in the 1st quarter of 2021 was HUF 788 billion, 6.1% of GDP. The balance deteriorated by HUF 664 billion, or by 5.1 percentage points as a proportion of GDP compared to the same period of the previous year. The change in the balance was the result of the larger increase of expenditures than that of revenues. The significant deterioration was due to the economic impact of the Covid19 pandemic and to the regulations adopted for reducing these effects.
In the 1st quarter of 2021 compared to the same period of 2020:
The general government sector’s revenues were HUF 5,008 billion and its expenditures HUF 5,796 billion.
Revenues went up by HUF 150 billion or by 3.1%. HUF 27 billion (3.6%) increase in value was recorded in taxes on income. Revenues from taxes on production were HUF 162 billion (8.3%) higher than a year earlier, VAT revenue growth was HUF 157 billion (15.5%). Social contributions increased by HUF 1 billion (by 0.1%). Other revenues declined by 41 billion (by 5.3%).
Expenditures increased by HUF 814 billion or by 16.3%. The growth in case of paid compensation of employees was HUF 107 billion (9.0%). Social benefits other than social transfers in kind rose by HUF 183 billion (by 13.9%), due to partial start of rebuilding the 13th month pension. Intermediate consumption went up by HUF 165 billion (by 20.9%), interest expenditures grew by HUF 40 billion (by 14.1%). Gross fixed capital formation decreased by HUF 10 billion (by 2.6%). Other general government sector expenditures grew by HUF 330 billion (by 32.7%) year-on-year, mainly due to the regulations adopted to reduce the economic impacts of the pandemic.