Hungary’s cash flow-based budget deficit, excluding local councils, was 2,922.2 billion forints at the end of October, the Finance Ministry said on Tuesday, confirming preliminary data.
The central budget deficit was 2,704.4 billion forints at the end of October, while the social insurance funds were 265.1 billion in the red. Separate state funds had a surplus of 47.3 billion. The deficit widened by 630.2 billion from a month earlier. The ministry said revenue from corporate tax, VAT, personal income tax and social insurance contributions rose in January-October from the same period a year earlier. Revenue from employers’ social security contributions fell because of a two-percentage-point reduction in the payroll tax introduced from July 2020, it added. “The government is continuing its crisis management based on support for families, tax cuts and investment incentives, thanks to which the re-start of the Hungarian economy has been among the fastest in the European Union,” the ministry said.