By Key features of financial processes regarding the central sub sector of the state budget in December 2012 and preliminary data for the year have been published today.
In the month of December 2012 the central sub sector of the state budget registered a surplus of 84.2bn HUF. Within that, the central state budget posted a surplus of 119.4bn HUF, while Social Security Funds and extra budgetary state funds recorded deficits of 33.2bn HUF and almost 2.0bn HUF, respectively. In the month of December 2011 the central sub sector of the state budget posted a deficit of 487.1bn HUF. (The discrepancy between data for the month of December in the two years is the consequence of extraordinary expenditures incurred at the end of 2011 and the VAT payments on the revenue side due to the verdict by the European Court of Justice.)
The preliminary annual cash flow deficit of the central sub sector of the state budget for the year of 2012 totaled 607.5bn HUF, corresponding to 2.1 percent of GDP, instead of the 671.9bn HUF estimate amended by law. The deficit in the year of 2011 amounted to 1741.6bn HUF.
The change in the cash flow deficit of the central sub sector in the year of 2012 serves as a proper basis for achieving the projected 2.7 percent deficit target calculated by EU methodology, which excludes the extra revenues of 50.9bn HUF originating from private pension fund membership transfer as recommended by the ECOFIN Council and undertaken by the Government of Hungary. Final data will be published at the end of March 2013 by the Hungarian Central Statistical Office (KSH) in the so-called EDP Report that will be officially forwarded to the European Union.
Central government budget
Revenues
The revenues of the central government budget for the month of December were almost 316bn HUF higher in comparison to the same month of the previous year. Among tax revenues of significant weight, receipts from corporate income tax, value added tax (a significant share of VAT refunds due to the verdict of the European Court of Justice was repaid), personal income tax and duties were significantly higher than last year's amount. In addition, revenues of budgetary institutions and chapter administered appropriations, 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 December were almost 226bn HUF lower in comparison to the same month of last year. As far as expenditures are concerned, they were lower regarding special and normative provisions, consumer price subsidies, budgetary institutions as well as expenditures related to state property. That fact that expenditures were lower compared to last year was due to a large extent to debt assumption related to the MÁV Zrt and local governments of counties incurred, as well as the higher than formerly planned capital increase at MFB at the end of 2011. At the same time, in December 2012 the debt of towns with a population below 5000 people was repaid. This item appeared as expenditure of 76bn HUF in the central sub sector's balance sheet and as revenue of equal amount at local governments.
Interest payment balance
Interest payments totaled 58.6bn HUF in December 2012, which was 19.0bn HUF more than in the corresponding period of the previous year. Interest revenues totaled 18.1bn HUF which was 7.1bn HUF higher than last year's figure. Thus the gap between net interest expenditures (40.5bn HUF) and the figure of the same period of last year as a whole amounted to 11.9bn HUF, due to a different interest payment schedule for this year.
Social security funds
The 33.2bn HUF deficit in December 2012 of Social Security Funds originated from the 4.3bn HUF surplus of the Pension Fund and the 37.5bn HUF deficit of Health Fund. In the month of December 2011 the compound deficit of the Funds amounted to 53.0bn HUF. On the revenue side social contribution tax payments and health care contribution payments of the Health Fund came in higher than in the previous year. On the expenditure side, (due to structural changes) pension benefit expenditures and drug subsidies at the Health Fund were lower, among others, than in the previous year.
Extra budgetary state funds
The negative balance of almost 2.0bn HUF of extra budgetary state funds in the month of December was more favourable than in the same month of the previous year. Total revenues and expenditures of the funds were 39.6bn HUF and 30.3bn HUF higher, respectively, compared to the corresponding period of the previous year. Within revenues, vocational training contributions at the National Employment Fund were higher. In addition, expenditures received as innovation contributions at the Research and Technological Innovation Fund were also more.
With regard to expenditures, those related to the Start work programme at the National Employment Fund were higher in comparison to the corresponding month of the previous year. 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 15.3bn HUF in December this year whereas the relevant figure for last year was 5.0bn HUF. Furthermore, employment and training subsidies as well as normative expenditures aimed at stimulating employment were also higher. Expenditures at the Research, Technology and Innovation Fund - parallel to higher revenues - were also up compared to the same period of the previous year.
Key cash flow data of the central sub sector of the state budget at the end of November are as follows:
(Ministry for National Economy)
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