October 05, 2023 08:14 GMT
OTP Bank Say Hungary Likely to Overshoot Revised Budget Deficit Target
- OTP Bank say in a note that Hungary will significantly overshoot even its upwardly revised budget deficit target this year unless the government takes steps to boost revenue or cut spending.
- The shortfall this year may be 7.3% of GDP versus the revised 5.2% goal for this year, they say. The budget deficit goal of 2.9% of GDP for 2024 is also at risk - OTP predict a 4.2% shortfall if no further steps are taken.
- Missed VAT revenues, higher pensions and interest payments have derailed the 2023 budget, while lower EU fund transfers are also having a negative impact. Regarding the funds, they say progress has been limited with possible exception on judiciary reforms, meaning less money will arrive this year.