General Gov't Deficit at 9.8% of GDP in Q1
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According to preliminary data published by the Central Statistical Office (KSH), the deficit of the general government sector in the 1st quarter of 2023 was HUF 1.728 trillion, amounting to about 9.8% of GDP.
Compared to Q1 2022, revenues went up by HUF 607 billion or by 9.2%. The largest, HUF 415 billion (15.6%) increase in value was recorded in taxes on production, primarily due to the special taxes introduced during 2022.
VAT revenue growth was HUF 129 billion (8.8%). Revenues from taxes on income were HUF 169 billion (16.4%) higher than a year earlier. Social contributions increased by HUF 186 billion (by 11.9%). Other revenues decreased by HUF 164 billion (by 12.2%).
Expenditures increased by HUF 1.872 trillion or by 26.5%.
The reduction in case of paid compensation of employees was HUF 151 billion (8.2%), being impacted by the payment of the six-month ‘firearms money’ in the base period as well.
Social benefits other than social transfers in kind rose by HUF 436 billion (by 23.4%), owing mainly to increased amounts of paid-out pension benefits.
Intermediate consumption surpassed by HUF 153 billion (by 13.6%) the previous year’s value, and interest expenditures grew by HUF 395 billion (by 113%).
Gross fixed capital formation decreased by HUF 46 billion (by 9.8%). Other general government sector expenditures went up by HUF 1.085 trillion (by 77.3%) year-on-year, mainly due to a sharp increase in subsidies for energy supplier companies.
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