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Hungary’s cash flow-based budget, excluding local councils, ran a 1,678 billion forint (EUR 5.2bn) deficit at the end of October, the finance ministry said in a second reading on Wednesday. The deficit hit 123.3% of the 1,360.7 billion forint full-year target. In October, the budget had a 181.6 billion shortfall.
The ministry noted that staff at budget-funded institutions had received their October paychecks early, on the last day of the month, rather than early in November, because of a long weekend for the All Saints’ Day holiday. Those payroll transfers exceeded 100 billion forints, it said.
Some 30 billion forints of family subsidies were also transferred early, and pre-financing of European Union funded projects continued during the month, it added. EU transfers came to 131 billion forints in October, bringing the total for the year so far to 472 billion, a level which “could rise significantly by year-end”, the ministry said. Tax revenue continued to grow, lifted by a crackdown on the shadow economy and the healthy pace of economic growth, the ministry said, confirming the full-year deficit target of 2.4% of GDP.