The balance of the central sub sector of the state budget in the first month of 2014 was in line with the Government’s prior estimates, as a deficit of HUF 75.4bn was recorded.

Within the central sub sector of the state budget, the central state budget posted a deficit of  HUF 166.6bn, while Social Security Funds and extra budgetary state funds and registered surpluses of HUF 54.6bn and HUF 36.6bn, respectively. In the month of January 2013, the deficit of the central sub sector of the state budget was HUF 2.5bn.

The discrepancy between the monthly balances in January 2013 and 2014 is contributable to differences regarding the expenditures of central budgetary institutions and to those between the revenues and expenditures of chapter administered appropriations. Expenditures of central budgetary institutions -- due to structural changes implemented during the year -- such as those related to non-profit healthcare organizations taken over by the state after April 2013 and teacher wage hikes as of September last year, increased in comparison to last year.

In addition, as far as the EU programmes of professional chapter administered appropriations are concerned, owing to the reform of the institutional system expenditures related to the operative programmes of the National Strategic Reference Fund were accounted in the last days of the month, while related EU revenues (due to different schedules) are accounted later, in the month of February.

Furthermore, subsidies for local governments were also significantly above those for January last year. This latter development stems partly from this year’s higher estimates, and partly from higher amounts disbursed as net financing. (This share increased from 5 percent in January 2013 to 12 percent in January 2014.)

(Ministry for National Economy)