Government finances offer important information regarding the economic status of a country, within it about the general government sector. As a main rule in the European Union member countries the government sector deficit may be 3% of the GDP at most; government debt ratio maximum 60% of the deficit. In case these conditions - the conditions for introducing the Euro also - are not met by a member state the excessive deficit procedure is launched against that state. Statistics regarding the government sector offer, beside deficit and debt related data, information about sums of revenue and expenditure as well as about their content.
Balance of the general government sector in proportion of GDP
Changes in total revenues of organisations classified into the general government sector compared to the same period of the previous year, in a given 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.
The deficit of the general government sector in 2020 was HUF 3,870 billion, 8.1% of GDP based on preliminary data of the national accounts. According to data produced in compliance with the methodological requirements of the system of national accounts (ESA 2010) the revenue of the general government sector was HUF 20,775 billion and its expenditure HUF 24,644 billion. Compared to 2019 revenues slightly increased (by 0.2%), expenditures grew by 13%.
In relation with the coronavirus pandemic the performance of the Hungarian economy decreased by 5.5% in the 1st – 3rd semesters of 2020, this result is replacing the 4-5% growths of the corresponding periods of the previous three years. During the same time the average GDP of the EU-27 states shrunk in a larger degree than the Hungarian one, by 7.0%. The population of Hungary decreased by 29 thousand people between January-October 2020 due to the natural decrease, this number is 5 thousand less year-on-year.
The volume of the gross domestic product (GDP) of Hungary was 4.6% larger in 2019 than a year earlier, and its value per capita approximated HUF 4.9 million. The deficit of the general government sector corresponded to 2.0% of GDP in 2019. Our publication contains in addition to the preliminary data for 2019 the final data for 2018, revised data for earlier years and the effects of a methodological change and routine revisions, the background to the calculations, too.