Deficit as a proportion of GDP was 6.3% in the 1st half of the year
According to preliminary data, the deficit of the general government sector in the 1st half of 2023 was HUF 2,296 billion, 6.3% of GDP. The deficit of the 2nd quarter was HUF 570 billion, 3.1% of GDP.
In the 1st half of 2023:
The general government sector’s revenues were HUF 15,366 billion and its expenditures HUF 17,662 billion.
In the 1st half of 2023, compared to the same period of 2022:
Revenues went up by HUF 1,605 billion or by 11.7%. The largest, HUF 790 billion (13.9%) increase in value was recorded in taxes on production, within it, VAT revenues grew by HUF 172 billion (by 5.5%), besides, special taxes rose significantly as well. Revenues from taxes on income surpassed by HUF 365 billion (16.1%) the previous year’s level. Social contributions increased by HUF 462 billion (by 14.6%). Other revenues decreased by HUF 11 billion (by 0.4%).
Expenditures increased by HUF 3.232 billion or by 22.4%. The growth in case of paid compensation of employees was HUF 33 billion (1.0%), being impacted by the payment of the six-month ‘firearms money’ in the base period as well. Social benefits other than social transfers in kind increased by HUF 778 billion (23.1%), owing mainly to increased amounts of paid out pension benefits. Intermediate consumption went up by HUF 370 billion (by 15.1%) and interest expenditures rose by HUF 832 billion (by 2.1 times). Gross fixed capital formation decreased by HUF 210 billion (by 15.3%). Other general government sector expenditures went up by HUF 1429 billion (by 47.5%) year-on-year, mainly due to a sharp increase in subsidies for energy supplier companies.
The balance deteriorated by HUF 1,627 billion, or by 4.2 percentage points as a proportion of GDP compared to the same period of the previous year.
In the 2nd quarter of 2023, compared to the same period of 2022:
Revenues increased by HUF 1,121 billion, by 16.0%.
Expenditures were HUF 1,429 billion (19.6%) higher.
The balance deteriorated by HUF 308 billion or by 1.5 percentage points compared to the previous year.
In 2022:
The deficit of the general government sector was HUF 4,126 billion in 2022, 6.2% 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 2022 – based on data of the National Bank of Hungary – was HUF 48,834 billion, 73.9% of GDP.