Ministry for National Economy

The state of the central sub sector of the state budget in November 2012

December 20, 2012 11:42 AM

Key data of the central sub sector of the state budget in November 2012 - In the month of November 2012 the central sub sector of the state budget registered a deficit of 33.6bn HUF. Within that, the central state budget, Social Security Funds and extra budgetary state funds registered deficits of 10.1bn HUF, 23.1bn HUF and 0.4bn HUF, respectively. In the month of November 2012 the central sub sector of the state budget posted a surplus of 79.9bn HUF.

There was a significant difference between the figures of the observed month and that of last year as in November 2011 the revenues of the Pension Fund were boosted by revenues totaling 179.7bn HUF originating from the Pension Reform and Debt Reduction Fund. In addition, it has to be taken also into account that due to bringing forward the payment of wages and certain benefits a one-off expenditure of 134.8bn HUF was registered already in October 2012.

With regard to the end-of-November deficits in 2011 and 2012 of the central sub sector, excluding one-off items and calculated therefore on the same basis, this year’s figure of 96.8 percent is more favourable than the 100.2 percent of last year.

The central sub sector of the state budget at the end of November 2012 closed with a deficit of 691.7bn HUF, while at the end of November 2011 this deficit totaled 1247.9bn HUF.

Central government budget

Revenues

The revenues of the central government budget for the month of November were 90.7bn HUF higher in comparison to the same month of the previous year. Among tax revenues of significant weight, receipts from value added tax, excise tax, personal income tax and duties were significantly higher than last year’s amount. In addition, revenues of budgetary institutions and chapter administered appropriations, payments related to state property as well as interest payments came in also higher compared to the corresponding period of last year.

Expenditures

Expenditures of the central government budget in the month of November were almost 61.5bn HUF higher in comparison to the same month of last year. That fact that expenditures were higher compared to last year was due to higher expenditures related to special and normative provisions, housing subsidies, budgetary institutions and chapter managed appropriations, interest payments as well as expenditures related to state property.

Revenues and expenditures at institutions of the local governments of counties taken over by the state significantly influenced the overall amount of revenues and expenditures at central budgetary institutions.

Interest payment balance

Interest payments totaled 135.3bn HUF in November 2012, which was 5.0bn HUF more than in the corresponding period of the previous year. Interest revenues totaled 12.7bn HUF which was 1.4bn HUF higher than last year’s figure. The gap between net interest expenditures (122.6bn HUF) and the figure of the same period of last year as a whole amounted to 3.6bn HUF, due to a different interest payment schedule for this year.

Social security funds

The 23.1bn HUF deficit in November 2012 of Social Security Funds originated from the deficit of almost 48.1bn HUF of the Pension Fund and the surplus of 25bn HUF of Health Fund. In the month of November 2011 the compound surplus of the Funds amounted to 120.7bn HUF. When comparing the two years it has to be pointed out that in November 2011 the Pension Fund received a one-off amount of 179.7bn HUF from the Pension Reform and Debt Reduction Fund, whereas this year a monthly subsidy of 8.5bn HUF is transferred to the Fund.

Extra budgetary state funds

The negative balance of 0.4bn HUF of extra budgetary state funds in the month of November was more favourable than in the same month of the previous year. Total revenues and expenditures of the funds were 5.0bn HUF and 3.9bn HUF higher, respectively, compared to the corresponding period of the previous year. Within revenues, vocational training contributions at the Labour Market Fund came in higher. With regard to expenditures, those related to the Start work programme at the National Employment Fund were higher. The reason for this is that in line with the intentions of the Government the Start work programme was allocated a larger amount this year, as payments amounted to 13.7bn HUF in November this year whereas the relevant figure for last year was 5.8bn HUF.