Hungary’s cash flow-based budget, excluding local councils, ran a deficit of 390 billion forints (EUR 1.2bn) or 39.1 percent of the 998.4 billion forint full-year target at the end of June, the finance ministry confirmed in a detailed release of data on Monday.
The central budget deficit reached 467.3 billion forints, while the separate state funds and the social insurance funds had surpluses of 61.0 billion and 16.3 billion forints, respectively.
EC Raises Hungary GDP Forecasts
Revenue from personal income tax rose by 105.4 billion forints over the same period a year earlier, while revenue from payroll tax climbed 260.1 billion forints in the period. Revenue from VAT totalled 397.4 billion forints higher and excise tax revenue increased by 45.3 billion forints.
Revenue was lifted by higher wages and employment, which, together with tax preferences, have boosted consumption, the ministry said. The 2019 deficit target of 1.8 percent of GDP, calculated using the EU’s accrual-based methodology, is “realistic and achievable”, it added.