Key features of financial processes regarding the central sub-sector of the state budget in February 2013.

In the month of February 2013, the central sub-sector of the state budget registered a deficit of HUF 337.0bn. Within that, the central state budget posted a deficit of HUF 360.4bn, while Social Security Funds and extra-budgetary state funds posted surpluses of HUF 11.2bn and HUF 12.2bn, respectively. In the month of February 2012, the central sub-sector of the state budget registered a deficit of HUF 393.9bn.

Thus, the deficit of the central sub-sector of the state budget was HUF 339.5bn at the end of February 2013.

When analyzing the monthly changes in the budgets for 2012 and 2013, it must be taken into account that due to significant changes concerning certain types of taxes (revenue estimates regarding some types of taxes were reduced, certain taxes were abolished or modified, and some new taxes were introduced) it is impossible to compare the two periods without filtering out the distorting effect of these factors.

Central government budget

Revenues

The revenues of the central government budget for the month of February were HUF 80.9bn higher in comparison to the same month of the previous year. The higher figure is primarily the consequence of first delaying the payment of certain taxes in 2012 – especially of Value Added Tax – and secondly, higher revenues at central budgetary institutions and chapter administered appropriations.

Expenditures

Expenditures of the central government budget in the month of February were HUF 36.7bn higher in comparison to the same month of last year, which is mainly attributable to more spending this year at budgetary institutions and chapter administered professional appropriations.
The wage payments of municipal institutions taken over as of 1 May 2012 played a key role in the change of revenues and expenditures at budgetary institutions.

Interest payment balance

Interest payments totaled HUF 277.0bn in February 2013, which was HUF 9.8bn below the figure of the corresponding period of the previous year. Interest revenues totaled HUF 5.4bn which was HUF 2.6bn less than last year’s figure. Thus the gap between net interest expenditures (HUF 271.6bn) and the figure of the same period of last year as a whole amounted to HUF 7.2bn, due to a different interest payment schedule for this year.

Social security funds

The HUF 11.2bn surplus of Social Security Funds in February 2013 originated from the HUF 1.1bn and HUF 10.1bn surpluses of the Pension Fund and the Health Fund, respectively. In the month of February 2012, the compound deficit of the Funds amounted to HUF 3.7bn. The difference is primarily due to revenue side change, as among others social contribution tax payments to the Pension Fund as well as health care contribution payments and fiscal subsidies and compensations to the Health Fund came in higher than in the previous year. (This latter entitlement will cover contributions related to the Job Protection Action Plan as of 2013.)

Extra-budgetary state funds

The positive balance of HUF 12.2bn of extra-budgetary state funds in the month of February 2013 was less favourable than in the same month of the previous year, as the monthly surplus was HUF 2.1bn less than the figure of the same month last year. Total revenues and expenditures of the funds were HUF 6.4bn and HUF 4.3bn lower. Within revenues, those at the Nuclear Fund and the National Employment Fund – originating from training contributions – were lower. In addition, revenues from healthcare contributions and labour market contributions were HUF 1.2bn lower, and the Fund no longer receives revenues from social contribution tax.

Key cash flow data of the central sub-sector of the state budget at the end of February 2013 are as follows:

(Ministry for National Economy)