Published on: 1 April 2022

In 2021 the deficit as a proportion of GDP was 6.8%

According to preliminary data the deficit of the general government sector in 2021 was HUF 3,736 billion, 6.8% of GDP. The balance improved year-on-year by HUF 25 billion, or by 1.0 percentage points as a proportion of GDP.

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 3,736 billion representing 6.8% of GDP. The debt of the general government sector at the end of 2021 – based on data of the National Bank of Hungary – reached HUF 42,414 billion, 76.8% of GDP.

In 2021 compared to 2020:

The general government sector’s revenues were HUF 22,695 billion and its expenditures HUF 26,431 billion.

Revenues increased by HUF 1,739 billion or by 8.3%. Taxes on production surpassed by HUF 946 billion (by 10.8%) the previous year’s level within it VAT revenues grew by HUF 743 billion (by 15.8%). Income tax revenues decreased by HUF 186 billion or by 5.8% due to the income tax refund to families with children. Social contributions went up by HUF 396 billion (by 7.4%). Other revenues, consisting mainly of EU transfers, grew by HUF 581 billion (by 16.1%).

Expenditures increased by HUF 1,715 billion or by 6.9%. The growth in case of paid compensation of employees was HUF 430 billion (8.3%) and regarding social benefits other than social transfers in kind it was HUF 582 billion (10.8%). Intermediate consumption went up by HUF 544 billion (by 13.1%) and interest expenditures rose by HUF 163 billion (by 14.5%). Gross fixed capital formation grew by HUF 108 billion (by 3.5%). Other general government sector expenditures declined by HUF 113 billion (by 1.9%).

In the 4th quarter of 2021 compared to the same period of 2020:

The general government sector had a deficit of HUF 1,728 billion, representing 11.9% of GDP. The balance improved by HUF 425 billion or by 5.1 percentage points as a proportion of GDP compared to the previous year.

Revenues increased by HUF 806 billion (by 13.9%).

Expenditures were HUF 381 billion (4.8%) higher than a year earlier.

EDP notification of Hungary