Hungary's Central Government Deficit Reaches 90% of Annual Target

The Hungarian Ministry of Finance reported that the central government’s deficit for the first five months of the fiscal year amounted to 3,806.3 billion forints, which is 90.2 % of the annual deficit target set in the budget law. Within the central system, the core state budget recorded a shortfall of 3,694.8 billion forints, while isolated state funds posted a surplus of 70.9 billion forints and the social‑security financial base showed a deficit of 182.4 billion forints.

In May, the central system posted a surplus of 43.5 billion forints, a sharp decline from the 129.5 billion surplus recorded for the same month a year earlier. Tax and contribution revenues rose 6 % compared with the same period last year, but specific taxes fell short: value‑added tax revenue was down by 55.4 billion forints and corporate tax revenue by 55.6 billion forints. The shortfall was partly caused by payments due at year‑end being postponed to June 1 due to a holiday, while pre‑holiday payments were lower than the previous year.

The report covers only a half‑month of data after the new cabinet, led by Prime Minister Viktor Tisza, took office on 13 May, but confirms the fiscal gap remains substantial.