Hungarian budget shows hardly any deficit
Hungary’s budget balance shows 61.4 billion forints deficit for the second quarter of 2016, which corresponds to 0.7% of gross domestic product, the Central Statistical Office (KSH) reported on Monday. Whereas the shortage is extremely low, there is still no record because the Q2 reading is HUF 9.6 bn or 0.1 percentage point higher than a year earlier.
The stats office said the deficit of the general government sector was HUF 61.4 billion, 0.7% of GDP in April-June, up from 0.6% of GDP in Q2 2015.
One of the key aspect when it comes to general government deficit is the four-quarter trailing average, which continues to shows a highly favourable budget situation.
Over the last four quarters, Hungary’s budget gap totalled 1% of GDP, which equals the end-March reading and this is also lowest figure since 1999, that is as far as the data series go back.
The cabinet had targeted 2.0% of GDP budget deficit for this year and by now even the Economy Ministry has acknowledged that it was a conservative goal and the actual balance could be better. The H1 general government data confirm this view, i.e. the budget may tolerate even a huge deficit in the second half.