Hungary’s cash flow-based budget, excluding local councils, was 254.6 billion forints (EUR 72m) in the red at the end of February, the Finance Ministry said in a final reading. The deficit reached 69.4% of the 367 billion forint full-year target.
The ministry data show that pre-financing for European Union-funded projects had a marked impact on the central budget. In January-February, payouts for those projects came to 569.4 billion forints, while transfers from Brussels reached just 61.2 billion forints. The ministry noted that in the base period, payouts for EU-funded projects came to 200.2 billion forints and were more than matched by 281.4 billion forints in transfers from Brussels.
The central budget ran a 283.7 billion forint deficit at the end February, while separate state funds were 36.3 billion forints in the black and the social insurance funds were 7.2 billion forints in the red. In February alone, the general government deficit reached 345 billion forints.
On the revenue side, revenue from value-added tax reached 15% of the full-year target by the end of February, while revenue from personal income tax stood at 17.3%. Revenue from payroll tax was 16.5% of the full-year target, the ministry said. In spite of tax cuts, economic growth lifted revenue from VAT by 56.4 billion forints, revenue from personal income tax by 40.1 billion forints and revenue from corporate profit tax rose by 35.3 billion forints, it added.