Published on: 2 April 2024

The deficit as a proportion of GDP was 6.7% in 2023

According to preliminary data the deficit of the general government sector in 2023 was HUF 5 018 billion, 6.7% of GDP. The balance deteriorated by HUF 911 billion and by close to 0.5 percentage points as a proportion of GDP, year-on-year.

The Hungarian Central Statistical Office reported the data to Eurostat, the Statistical Office of the European Union, 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 5 018 billion, 6.7% of GDP. The debt of the general government sector at the end of 2023 – based on data of the National Bank of Hungary – reached HUF 55 134 billion, 73.5% of GDP.

In 2023:

The general government sector’s revenue was HUF 31 814 billion and its expenditure HUF 36 832 billion.

In 2023 compared to 2022:

Revenues increased by HUF 3 645 billion or by 12.9%. The largest, HUF 1 142 billion (9.5%) increase in value was recorded in taxes on production, within it, VAT revenues grew by HUF 363 billion (by 5.4%). Revenues from taxes on income surpassed by HUF 1 037 billion (22.7%) the previous year’s level. Social contributions increased by HUF 959 billion (by 14.8%). Other revenues went up by HUF 507 billion (close to 10%).

Expenditures increased by HUF 4 556 billion or by 14.1%. The growth in case of paid compensation of employees was HUF 456 billion (6.7%), regarding social benefits other than social transfers in kind it was HUF 1 265 billion (18.4%). Intermediate consumption went up by HUF 400 billion (by 7%) and interest expenditures increased by HUF 1 660 billion (by 88.8%). Gross fixed capital formation grew by HUF 232 billion (by 6.5%). Other general government sector expenditures went up by HUF 543 billion (by 7.3%).

In the 4th quarter of 2023 compared to the same period of 2022:

The general government sector had a deficit of HUF 2 071 billion, representing 10.6% of GDP. The balance improved by HUF 410 billion or by 3.8 percentage points compared to the previous year.

Revenues increased by HUF 1 112 billion (by 14.6%).

Expenditures were HUF 701 billion (7.0%) higher.

EDP notification of Hungary