The deficit swelled because of the economic impact of the pandemic as well as government stimulus and spending on Covid-19 defence.

KSH noted that Hungary’s public debt as a percentage of GDP reached 80.4% at the end of 2020, citing data compiled by the National Bank of Hungary (NBH).

In absolute terms, public debt stood at 38,408 billion forints.

Budget revenue rose by 0.2% to 20,775 billion forints for the year.

Expenditures were up 13.4% at 24,644 billion. The budget deficit came to 2,276 billion forints in the fourth quarter, equivalent to 18.1% of GDP.

Commenting on the data, the finance ministry said Hungary’s public debt was lower than the European Union average of over 90% of GDP.

Meanwhile, the 8.1% budget deficit is expected to be around the EU average, the ministry said in a statement.

Last year’s budget provided ample resources for the government’s pandemic response and economic protection measures, including the purchase of protective equipment and the financing of infrastructure developments, it added.

Click here to read the full report on KSH's website