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BUDGET MAINTAINS HUF 67.3 BN SURPLUS BY END-FEB

 

Hungary’s cash-flow-based budget, excluding local councils, ran a 67.3 billion forint (EUR 213m) surplus at the end of February, the finance ministry said in a second reading of data. The deficit target for the full year is 998.4 billion forints. In February alone, the budget deficit came to around 177.2 billion forints but January had a surplus of 244.5 billion forints. Main expenditure items in February included spending on measures to promote social goals and development programmes, the ministry said. The ministry said the numbers reflect rising wages stemming from the government’s six-year wage agreement with employers and unions, higher number of employed workers, increasing household consumption, government support for families’ home purchases and measures to whiten the economy. The government has a full-year deficit target of 1.8 percent of GDP calculating with EU methodology and expects the level of government debt to fall. Reaching the deficit target is supported by the government’s economic policy and balanced growth that ensures the sustainability of the budget, the ministry said.