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–3rd quarters of 2021 was HUF 1,570 billion, 3.9% of GDP. The balance improved year-on-year by HUF 79 billion, or by 0.7 percentage points as a proportion of GDP.
The performance of the Hungarian economy surpassed in the 1st semester of 2021 the previous year’s low base by 7.6% and it was slightly (by 1.2%) higher than two years ago. Industry was the main driving force, its gross added value grew by 19% compared to the 1st half of 2020, contributing to the GDP increase by 3.9 percentage points. On the expenditure side the growth has been facilitated mostly by the external trade (by 4.1 percentage points),within it mainly by the trade in goods.
Our publication, also highlighting the main effects of the pandemic, gives an overview of the social and economic trends in Hungary in 2020, including a 5% drop in GDP, putting us in the middle of the EU ranking, taking into use 28,000 new homes, the highest number since 2009, a nearly threefold increase in the share of people working remotely or from home as compared to the average for the past 10 years, a 42% increase in the value of mail order and internet retailing, and fewer accidents on the roads.
The deficit of the general government sector was HUF 3,823 billion in 2020, 8.0% of GDP, based on the second preliminary data of 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 increased by 1.0%, expenditures by 13.9%. The debt of the general government sector at the end of 2020 – based on data of the National Bank of Hungary – was HUF 38.4 thousand billion, 80.1% of GDP.
Hungary’s gross domestic product (GDP) at current prices was nearly HUF 48 thousand billion in 2020, decreasing by 4.7% at constant prices compared to the previous year. The amount of gross domestic product per capita was HUF 4.9 million, or EUR 22 thousand in purchasing power standard. The deficit of the general government sector was HUF 3.8 thousand billion, 8.0% of GDP.