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.
The performance of the Hungarian economy lagged behind the one year earlier level by 0.9% in the 1st quarter of 2023. The January – March 2023 natural decrease of the population amounted to 14 thousand people, 27% less than one year earlier. The decrease is mostly due to the lower mortality. The hike of consumer prices was 25% in the first four months, compared to the same period of 2022, the 42% increase in food prices contributed the most to the rise in prices.
Hungary's GDP amounted to HUF 17,717 billion in the 1st quarter of 2023. Non-financial corporations, as well as households and non-profit institutions serving households (NPISHs) were in a net lending, and financial corporations and the general government in a net borrowing position in the indicated period. The gross saving rate of households and NPISHs reached 19%. The gross profit share of non-financial corporations came to 49%. The gross investment rate of households and NPISHs was 10.5% and that of non-financial corporations 33%.
According to preliminary data the deficit of the general government sector in the 1st quarter of 2023 was HUF 1,728 billion, 9.8% of GDP. The balance deteriorated by HUF 1,265 billion, or by 6.8 percentage points as a proportion of the GDP, compared to the same period of the previous year.
The deficit of the general government sector in Hungary, in 2022, was HUF 4,159 billion, 6.2% of the GDP based on preliminary data of national accounts. The debt of the general government sector at the end of 2022 – based on data of the National Bank of Hungary – was HUF 48,837 billion, 73.3% of the GDP.