Hungary’s finances remain orderly, and the state budget continues to stand on a stable footing, the Ministry for National Economy (NGM) stated in its detailed report on the status of the central subsystem of public finances at the end of July. The ministry emphasized that the government is carrying out Europe’s largest tax cut program while maintaining its commitment to fiscal discipline, debt reduction, and lowering the budget deficit.

According to the report, revenues from consumption-related taxes grew by 9 percent in the first seven months of 2025 compared to the same period last year. By the end of July, the central subsystem registered a deficit of HUF 2786.4 billion, representing 58.4 percent of the expected annual shortfall, which the ministry said indicates the revised deficit target remains achievable.

Within this, the central budget recorded a HUF 2779.9 billion deficit, while extra-budgetary state funds showed an 89.1 billion surplus, and the social security funds posted a 95.6 billion deficit. Overall revenues reached HUF 23,394.9 billion by the end of July, a 6.2 percent increase year-on-year, while expenditures stood at 26,181.3 billion, up 6.9 percent.

The ministry pointed to higher spending on pensions, healthcare, transport, and utilities, as well as increased interest payments due to debt structure and maturity schedules. Pension-related outlays, including the 13th-month pension, totaled HUF 4400.8 billion, while healthcare spending reached HUF 1732 billion.

The NGM reaffirmed that despite rising expenditures, Hungary’s fiscal management remains disciplined, with strong revenues supporting stability and long-term debt sustainability.