According to detailed public finance statements describing the situation at the end of August, they are hundreds of billions behind what was planned.

The Ministry of Finance issued a detailed report on the state of the central public finance subsystem at the end of August, according to which the decline in VAT revenues is largely to blame for the approximate deficit of HUF 3,298.7 billion in public finances.

According to the details, within the gap

  • Central budget deficit of 3,330.8 billion HUF,
  • Separate state funds have a surplus of HUF 125.1 billion,
  • The financial foundations of Social Insurance showed a deficit of HUF 93.0 billion.

Central subsystem revenues amounted to HUF 23,040.9 billion at the end of August and reached HUF 3,857.5 billion, 20.1 percent higher than in the same period of the previous year. Meanwhile, central subsystem expenditures of HUF 26,339.6 billion at the end of August exceeded the figure for the same period of the previous year by HUF 4,283.4 billion, or 19.4 percent.

Aggregated data for the first eight months typically shows an increase in revenue when compared to aggregated data for the same period of the previous year.

In the first eight months of the year, 749.3 billion Hungarian forints were received in corporate tax, an increase of 207.3 billion Hungarian forints over the previous year. The surplus resulted from higher cash flow related to May settlements and a higher level of advances than in the previous year, as well as payments related to the settlement of individual taxpayers and various business annuities.

Payments from financial institutions brought $152.9 billion to the balance sheet, which is $111.4 billion more than last year. The explanation for this is the income obtained from the special tax imposed by financial organizations, as well as from the additional profit tax imposed by credit institutions and financial institutions.

Unsurprisingly, the income of the kata fell significantly. In the first eight months of 2023, the budget generated revenues of HUF 47.8 billion, which is HUF 95.8 billion less than the previous year. On the other hand, income from small business tax (Kiva) amounted to 134.7 billion forints, which was 29.3 billion forints higher than the balance of the previous year.

In the first eight months of 2023, 307.9 billion HUFs were received under energy sector payments, which exceeded the previous year’s balance by 244 billion HUFs. Compared to the base year, the difference is caused by changes in the tax rules for the types of taxes payable under this title and additional dividend taxes.

In the first eight months of the year, the budget received a total of HUF 4,352.4 billion in sales tax, which is HUF 6.2 billion more than the previous year. But this growth is small, can be interpreted as a recession, and indicates that because of inflation, people have restricted their spending, and household consumption (in terms of size) has been declining for more than a year.

The above is the aggregated data for the first eight months, however, if we compare only August of this year with last year, we get a much bleaker picture. file. According to the newspaper, revenues of the central subsystem rose by 10.6 percent, but expenses rose by 14.6 percent.

If we only look at VAT revenues for August instead of the first eight months, they amounted to 314 billion Hungarian forints, which is 14.5 percent lower than last August. This year is already the fourth month in which value-added tax revenues have declined year-on-year, in addition to hyperinflation. Compared to the plans, VAT revenues now show a deficit of HUF 710 billion, meaning that this region is mainly responsible for the budget slippage.




HVG


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