Hungarian Central Budget Reports Surplus Driven by Dividend Payments in May
The Hungarian central budget recorded a surplus of HUF 129.5 billion in May, significantly influenced by MVM dividend payments and corporate tax revenues.
In May 2023, Hungary's central budget achieved a surplus of HUF 129.5 billion, primarily due to the receipt of HUF 213.5 billion in dividend payments from the Hungarian power company MVM, as well as early corporate tax payments from various companies, according to the monthly report from the Ministry of Finance.
Despite corporate tax payment deadlines falling on June 2, a total of HUF 238.4 billion in tax revenue was collected by the end of May. This surplus represents an increase of HUF 80.5 billion compared to the same period in the previous year.
As of the end of May, the central sub-system of the state budget reported a total deficit of HUF 2,800.9 billion.
This included a central budget deficit of HUF 2,747.2 billion, a surplus of HUF 45.3 billion in designated state funds, and a deficit of HUF 99 billion in social security financial funds.
The current deficit reflects a slight improvement from April's figures, which indicated that over 70% of the planned annual deficit had already been realized.
Additionally, the government modified its previously set deficit target from 3.7% to 4.1% and decided to take on additional foreign currency debt.
On the expenditure side, by the end of May, HUF 2,217.7 billion had been paid out in interest, marking an increase of HUF 457.1 billion compared to the same period last year.
This rise is attributed to varying payment schedules for different maturities and changes in the structure of national debt.
Furthermore, expenditures for pension benefits have also risen this year.
By the end of May, a total of HUF 3,292.9 billion was allocated for pensions, including a 13th-month pension, while HUF 1,250.6 billion was spent on health and preventive care services.
According to the report, tax and contribution revenues for the central sub-system increased by 7.8% compared to the same period last year.
Notably, revenues from consumption-related taxes experienced an increase of nearly 12%, with both value-added tax and income tax collections surpassing previous year figures.
A detailed report on the central sub-system's situation as of the end of May will be published by the Ministry of Finance on June 23.
Despite corporate tax payment deadlines falling on June 2, a total of HUF 238.4 billion in tax revenue was collected by the end of May. This surplus represents an increase of HUF 80.5 billion compared to the same period in the previous year.
As of the end of May, the central sub-system of the state budget reported a total deficit of HUF 2,800.9 billion.
This included a central budget deficit of HUF 2,747.2 billion, a surplus of HUF 45.3 billion in designated state funds, and a deficit of HUF 99 billion in social security financial funds.
The current deficit reflects a slight improvement from April's figures, which indicated that over 70% of the planned annual deficit had already been realized.
Additionally, the government modified its previously set deficit target from 3.7% to 4.1% and decided to take on additional foreign currency debt.
On the expenditure side, by the end of May, HUF 2,217.7 billion had been paid out in interest, marking an increase of HUF 457.1 billion compared to the same period last year.
This rise is attributed to varying payment schedules for different maturities and changes in the structure of national debt.
Furthermore, expenditures for pension benefits have also risen this year.
By the end of May, a total of HUF 3,292.9 billion was allocated for pensions, including a 13th-month pension, while HUF 1,250.6 billion was spent on health and preventive care services.
According to the report, tax and contribution revenues for the central sub-system increased by 7.8% compared to the same period last year.
Notably, revenues from consumption-related taxes experienced an increase of nearly 12%, with both value-added tax and income tax collections surpassing previous year figures.
A detailed report on the central sub-system's situation as of the end of May will be published by the Ministry of Finance on June 23.
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