Gen gov't sector deficit at 6.1% of GDP in Q1
According to preliminary data by the Central Statistical Office (KSH), the deficit of the general government sector in the firsst quarter of 2021 was HUF 788 billion, 6.1% of GDP.
The balance deteriorated by HUF 664 billion, or by 5.1 percentage points as a proportion of GDP compared to the same period of the previous year.
The change in the balance was the result of the larger increase of expenditures than that of revenues. The significant deterioration was due to the economic impact of the COVID-19 pandemic and to the regulations adopted for reducing these effects, KSH notes.
The general government sector’s revenues were HUF 5,008 bln and its expenditures HUF 5,796 bln in Q1 2021.
Revenues went up by HUF 150 bln or by 3.1%. HUF 27 bln (3.6%) increase in value was recorded in taxes on income. Revenues from taxes on production were HUF 162 bln (8.3%) higher than a year earlier, VAT revenue growth was HUF 157 bln (15.5%). Social contributions increased by HUF 1 bln (by 0.1%). Other revenues declined by 41 bln (by 5.3%).
Expenditures increased by HUF 814 bln or by 16.3%. The growth in the case of paid compensation of employees was HUF 107 bln (9%). Social benefits other than social transfers in kind rose by HUF 183 bln (by 13.9%), due to the partial start of rebuilding the 13th-month pension. Intermediate consumption went up by HUF 165 bln (by 20.9%), interest expenditures grew by HUF 40 bln (by 14.1%). Gross fixed capital formation decreased by HUF 10 bln (by 2.6%).
Other general government sector expenditures grew by HUF 330 bln (by 32.7%) compared to the same period of the previous year, mainly due to the regulations adopted to reduce the economic impacts of the pandemic.
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