Published on: 1 October 2021

Deficit as a proportion of GDP was 4.2% in the 1st half of the year

According to preliminary data, the deficit of the general government sector in the 1st half of 2021 was HUF 1,112 billion, 4.2% of GDP. The balance is equal in essence to the level of the 1st half of 2020, however it is 0.5 percentage points better as a proportion of GDP year-on-year.

In the 1st half of 2021, compared to the same period of 2020:

The general government sector’s revenues were HUF 10,502 billion and its expenditures HUF 11,614 billion.

Revenues increased by HUF 604 billion or by 6.1%.

The largest, HUF 433 billion (10.9%) increase in value was recorded in taxes on production within it VAT revenues grew by HUF 387 billion (by 18.7%). Revenues from taxes on income surpassed by HUF 218 billion (14.2%) the previous year’s. Social contributions increased by HUF 97 billion (by 3.6%). Other revenues decreased by HUF 144 billion (by 8.6%).

Expenditures increased by HUF 605 billion or by 5.5%. The growth in case of paid compensation of employees was HUF 166 billion (6.5%), regarding social benefits other than social transfers in kind it was HUF 219 billion (8.2%). Intermediate consumption went up by HUF 198 billion (by 11.0%) and interest expenditures increased by HUF 72 billion (by 12.9%). Gross fixed capital formation decreased by HUF 55 billion (by 4.6%). Other general government sector expenditures went up by HUF 6 billion (by 0.3%).

In the 2nd quarter of 2021, compared to the same period of 2020:

The general government sector had a deficit of HUF 333 billion, representing 2.5% of GDP. The balance improved by HUF 644 billion or by 6.4 percentage points compared to the previous year.

Revenues increased by HUF 495 billion, by 9.9%.

Expenditures were HUF 149 billion, by 2.5% lower.

In 2020:

The deficit of the general government sector in 2020 was HUF 3,823 billion, 8.0% 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 2020 – based on data of the National Bank of Hungary – was HUF 38,418 billion, 80.1% of GDP.

EDP notification of Hungary