In the month of November 2013, the central sub sector of the state budget registered a monthly surplus of HUF 11.3bn. The end-of-November cash flow data on the general government budget are in line with the Government’s expectations. Revenues and expenditures projected for this month and next confirm that the deficit target of below 3 percent for the entire year will be achieved.

Within the central sub sector of the state budget, the central state budget posted a surplus of HUF 195.5bn, while Social Security Funds and extra budgetary state funds registered deficits of HUF 183.3bn and HUF 0.9bn, respectively, in November. Thus, the deficit of the central sub sector of the state budget was 876.3bn HUF at the end of November 2013.

Thanks to Government measures, there have been changes which substantially influenced both the revenue and expenditure sides this year and last. With regard to revenues, revenue estimates concerning some taxes were lowered, certain taxes were abolished or modified, and new taxes were also introduced. Until the end of November 2013 – in comparison to 2012 -- revenues were higher from certain taxes, such as those from value-added tax, personal income tax, vehicle registration tax, the extra tax for financial institutions as well as revenues from fees and duties. In addition, a significant one-off item among revenues related to state property was the amount paid for the extension of frequency usage rights.

On the expenditure side, some extra costs were incurred as in several fields the responsibilities of local governments and related financing were taken over by the central sub sector of the state budget. Consequently, expenditures of the state budget were higher at the end of November, in comparison to last year. This year, expenditures relating to healthcare, welfare and other institutions – e.g.: hospitals, institutions providing disabled treatment, childcare facilities – as well as to wages of teachers within the public education system are recorded as state expenditures.

In addition, railway, road transport and housing subsidies as well as expenditures relating to state property also exceeded the amount disbursed last year.

(Ministry for National Economy)