Higher VAT And Cutbacks Boost Budget In Hungary
- 1 Mar 2012 8:01 AM
"The budget recorded a Ft 107.3 billion surplus in January, in line with initial estimates, according to final data released recently by the Economy Ministry. The budget ran a Ft 122.8 billion deficit in January 2011.
The government projects the cash-flow-based deficit to reach Ft 576 billion this year.
The ministry attributed the January surplus to lower expenditures and higher VAT revenues, up from Ft 260 billion one year earlier to Ft 296 billion, as the rate went up from 25% to 27% from January 1.
Revenues from income tax fell to Ft 147 billion from Ft 156 billion in January 2011, while expenditures were Ft 84 billion lower.
Pension outlays did not change, although the government had expected to save billions from restrictions on pension benefit eligibility introduced last year."
Source: Hungary Around the Clock
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