In the first four months, the deficit of the central budget reached HUF 144.9 billion, or 19% of the full-year target, the lowest figure in this time of the year in the past fifteen years.
Last year the deficit was HUF 610 billion, or 50% of the year-end target. The final figures corresponded with the preliminary data. Lower expenditures and higher-than-expected tax revenues – the result of responsible and prudent fiscal policy led to the decline of the deficit. Tax revenues of the state rose in spite of the one percentage point cut in the tax rate, which left HUF 120 billion in the pockets of households.
The HUF 432 billion decline in expenditures was the result of fall in EU subsidies and lower interest payments.
