Hungarian government reveals large fiscal shortfall and spending surge in first half of 2025

Data released by the Central Statistical Office show that Hungary's public finances ran a sizable deficit in the first half of 2025, with a gap of several hundred billion forint in the opening quarter and an additional shortfall in the second quarter. Total outlays exceeded those of January-June 2024 by over two trillion forint, while tax receipts rose by just over five hundred billion, driven largely by higher social security contributions and income-tax revenues linked to wage growth.

Public-sector salaries accounted for more than one trillion forint of the extra spending, and pension payments added another six hundred billion. By contrast, capital investment spending dropped by three hundred billion. The GDP grew by 1.7% compared with the same period a year earlier, falling short of government expectations. A sharp monthly deficit in August was largely offset by pre-payments linked to the EU Recovery and Resilience Facility, which are expected to improve the fiscal picture in later years.