As of the end of September Hungary’s deficit was 107 percent of that projected for the entire year, writes daily economic online napi.hu.
Hungary’s deficit over the first nine months of 2015 reached HUF 954.6 billion (USD 3.4 billion). This represents a 13 percent increase year-on-year. Not since 2008 has Hungary run such a large deficit over the course of the first nine months, reports the news portal.
Taken together with the deficits run by Hungary’s social security fund (HUF 29.9 billion) and various stand-alone state financial funds (HUF 22.1 billion), the total national budget deficit comes to HUF 1006.6 billion (USD 3.6 billion).
The main cause for the higher deficit figure according to napi.hu is because the European Commission suspended payment of development funds to Hungary earlier this year. In the absence of such transfers, Hungary’s deficit may reach 2.4 percent by year-end, according to the Ministry for National Economy.
In the meantime, the European Commission has ended the suspension of transfers to Hungary. Should the transfers take place in the fourth quarter of this year, then, all things being equal, Hungary should meet its deficit target of 2 percent, according to the Ministry.