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

In the month of March 2013 the central sub sector of the state budget registered a monthly deficit of 154.1bn HUF. Within that, the central state budget and extra budgetary state funds posted deficits of 137.5bn HUF and 17.2bn HUF, respectively, while Social Security Funds registered a surplus of 0.6bn HUF. In the month of March 2012 the central sub sector of the state budget had a deficit of 230.9bn HUF.

Thus, the deficit of the central sub sector of the state budget was 493.6bn HUF at the end of March 2013.

When analyzing the monthly changes in the budgets for 2012 and 2013 it has to 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 March were 223.0bn HUF higher in comparison to the same month of the previous year. The higher figure has been the consequence firstly of delaying the payment of certain taxes in 2012 – especially of Value Added Tax – as well as revenues from new taxes introduced this year and, secondly, of higher revenues at central budgetary institutions and chapter administered appropriations.

Expenditures

Expenditures of the central government budget in the month of March were 125.0bn HUF 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.
Municipal institutions taken over as of 1 May 2012 and 1 January 2013 played a key role in the change of revenues and expenditures at budgetary institutions.

Interest payment balance

Interest payments totaled 75.5bn HUF in March 2013 and were 14.7bn HUF below the figure of the corresponding period of the previous year. Interest revenues totaled 6.6bn HUF which was 4.6bn HUF less than last year’s figure. Thus the gap between net interest expenditures (68.9bn HUF) and the figure of the same period of last year as a whole amounted to 10.1bn HUF, due to a different interest payment schedule for this year.

Social security funds

The 0.6bn HUF surplus in March 2013 of Social Security Funds originated from the surplus of 1.7bn HUF at the Pension Fund and the deficit of 1.1bn HUF at the Health Fund. In the month of March 2012 the compound deficit of the Funds amounted to 3.6bn HUF. 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 as of 2013 contributions related to the Job Protection Action Plan.)

Extra budgetary state funds

The 17.2bn HUF shortfall of extra budgetary state funds in the month of March was less favourable than in the same month of the previous year. Total revenues of the Funds were 4.0bn HUF lower, while expenditures were 21.4bn HUF higher in comparison to the same month of the previous year. Within revenues, those at the National Employment Fund – originating from training contributions -- were lower. Taxpayers reclaimed a significant amount as the annual tax returns were concluded, which reduced revenues in March. In addition, the Fund no longer receives revenues from social contribution tax. Among expenditures, those concerning the Start work programme of the National Employment Fund edged higher, as the bulk of payments projected for previous months were realized in the month of March.

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

(Ministry of National Economy)