Budget Deficit and State Debt Below Forecast
Some 600 billion of EU funds yet to flow in the budget
The budget deficit came to 2% of GDP last year, below the 2.4% forecast and state debt was below 76% of GDP at the end of the year, also below projections, National Economy Minister Mihály Varga said at a press conference.
The cashflow-based deficit of the central government came to 1.218 trillion forints, the minister said, adding that the ministry is scheduled to publish a first reading of the December and full-year figures later today, MTI reported.
Some 600 billion forints in EU funding did not flow in before the end of last year, the cashflow gap is more than 300 billion forints higher than the respective target of HUF 892.4 bln, Varga said, according to MTI.
The disbursement of EU funds was delayed as the European Commission temporarily suspended transfers between April and September, MTI cited Varga as saying. The delayed inflow and advance payments made to EU-funded projects by the central budget raised the cashflow deficit while it did not affect the accrual-based ESA deficit, MTI added.
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Varga reportedly said that the general governmentʼs position was better than expected with higher growth raising tax revenues, and it is expected to exceed plans by 550 billion forints, MTI reported. Gross wages rose 6.7% and consumer spending also rose last year, Varga noted, according to MTI.
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