Hungary: Second Covid Wave Puts Another Hole in the Budget

2020. december 09.

ING Think

November brought new containment measures and with that, the budget has suffered another huge hit. Moreover, the government has revisited its 2021 budget plan. The general government’s budget deficit increased by HUF 693.9 billion in November, the second biggest monthly shortfall in 2020. This resulted in a HUF 3.3 trillion accumulated cash-flow based deficit in the past 11 months. Compared to the same period of last year, it is 4.3 times higher - an extra shortfall of more than HUF 2.5 trillion. The January-November deficit sits at 92% of the plan for the whole year based on an 8% deficit-to-GDP ratio.