KSH: the GDP-proportionate deficit was 4.2 percent in the third quarter of 2025, and 1.9 percent in the first three quarters in total

By: Trademagazin Date: 2026. 01. 06. 11:32

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The government sector’s deficit in the third quarter was 909 billion forints, 4.2 percent of GDP. The balance is 95 billion forints, or 0.2 percentage points, worse than a year earlier, the Central Statistical Office (KSH) reported on Tuesday.

In the first three quarters of 2025, the central government deficit was 1,366.6 billion forints, while local governments and social security funds had surpluses of 116.9 billion and 30.8 billion forints, respectively.

In the third quarter of 2025, the deficit of the central government was 831.6 billion, that of local governments was 19.8 billion, and that of social security funds was 57.3 billion forints.

Compared to the same period of the previous year, the balance in the third quarter of 2025 became 95 billion forints, or 0.2 percentage points, less favorable. Revenues increased by 529 billion forints, or 6.3 percent, while expenditures increased by 624 billion forints, or 6.8 percent.

According to preliminary data, the government sector deficit in the first three quarters of 2025 was 1,219 billion forints, or 1.9 percent of GDP. The government sector’s revenue was 27,585 billion, and its expenditure was 28,804 billion forints. Compared to the same period in 2024, the balance is 1,142 billion forints more favorable than the same period of the previous year, or 2 percentage points more favorable in terms of GDP.

Revenues increased by 2,241 billion forints (8.8 percent). The largest contribution to the growth was made by production and import tax revenues, which increased by 794 billion forints (7.8 percent).

Income and property tax revenues exceeded the values of a year earlier by 624 billion forints (13.8 percent). Social security contributions revenues increased by 569 billion forints (9.2 percent). Other revenues increased by 253 billion forints (5.7 percent), the report detailed.

Expenditures increased by 1,100 billion forints (4.0 percent). The increase in employee income was 617 billion forints (10 percent), and in cash social benefits it was 446 billion forints (6.7 percent).

Current consumption exceeded the same period in 2024 by 164 billion forints (3.4 percent), and other government sector expenditures by 389 billion forints (7.5 percent). Interest expenditures fell by 432 billion forints (14.4 percent). Gross fixed capital formation fell by 85 billion forints (4.5 percent) from the same period in 2024, the Central Statistical Office announced.