The central sub sector of the state budget posted a preliminary deficit of HUF 929.2bn for the year 2013. At the end of December, cash-flow data of the central sub sector of the budget turned out to be even more favourable than the Government’s expectations. Preliminary cash-flow figures for revenues and expenditures of the year 2013 confirm that the below 3 percent deficit target calculated in accordance with EU methodology will be met.

Within the central sub sector of the state budget, the central state budget closed the year 2013 with a deficit of HUF 979.7bn, while extra budgetary state funds posted a surplus of HUF 50.5bn and Social Security Funds broke even.

Government measures brought about changes which markedly influenced revenues and expenditures this year and last. On the revenue side, several revenue estimates of certain taxes were revised downward, certain types of taxes were abolished or modified and new taxes were introduced.

In comparison to 2012, however, in 2013 certain tax revenues were higher than formerly anticipated, for example those from value added tax, personal income tax, vehicle registration tax and the extra tax for financial institutions. In addition, the amount paid for the prolongation of frequency usage rights was also a significant item within the revenue category for state assets.

On the expenditure side, the integration of some assignments of local governments and their respective financing into the central sub sector of the state budget has resulted in additional expenditures. Consequently, at the end of December the expenditures of the central state budget were higher than last year. This year, expenditures relating to healthcare, welfare and other institutions taken over by the state – such as hospitals, institutions treating disabled people, childcare facilities – as well as to wages of teachers within public education were booked as state expenditures.

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

(Ministry for National Economy)