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The long-observed budget deficit was caused by the outbreak of the coronavirus epidemic and the ensuing economic crisis. In the April-June period, less than 986 billion HUF were formed, which is equivalent to 9.1% of GDP.
There has been no example of such a large quarterly deficit since the fourth quarter of 2006.
The recent data is not at all surprising, as we draw attention to this every time we publish monthly cash flow budget data.
Thus, the four-quarter moving average of the general government balance is -5.1% of GDP. There has been no example of such a high value since 2012. So it is clear that
- the cost of health control in the face of the coronavirus epidemic,
- the effects of economic protection measures adopted to mitigate adverse economic effects, and
- budget revenue shortfall due to crisis,
together, they thoroughly rewrote this year’s public finance processes.
In the language of figures, this means that in the second quarter of this year (compared to the previous year) revenues decreased by HUF 288 billion, or 5.5%, and expenses exceeded HUF 730 billion. (14.0%). years before.
The first 6 months
According to preliminary data, the public administrations deficit in the first half of the year was 1,219 million HUF, or 5.3% of GDP. Compared to the same period in the previous year, the balance decreased by HUF 1,378 million, or 6.0 percentage points of GDP. The significant deterioration is a consequence of the economic effects of the coronavirus epidemic and the measures taken to mitigate them, the CSO detailed.
A income They fell by 140 billion HUF, or 1.4%. Social security contributions decreased by the largest amount, by HUF 111 billion, or 4.0%. Taxes on production were HUF 69 billion, 1.7% less than the previous year, within which the decrease in VAT revenue was HUF 38 billion, or 1.8%. Income tax revenue was HUF 19 billion, down 1.2%. Other revenue increased by HUF 62 billion, or 3.9%.
A expenses They increased by 1,239 million HUF, or 12.6%. The increase was HUF 227 billion (9.7%) in the case of income from salaried employees and HUF 209 billion (8.5%) in the case of cash social benefits. Current productive use increased by HUF 136 billion, or 8.2%, and interest expense increased by HUF 38 billion, or 7.4%. Gross fixed capital formation decreased, the variation was 18,000 million HUF (1.6%). Other public administration expenses increased by HUF 646 billion, or 37.5%.
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