Ahead of Hungary‘s general election this weekend, new data from the Hungarian Central Statistical Office (HCSO) has revealed that the country’s general government sector posted a deficit of HUF 4,059 billion in 2025, equivalent to 4.7% of GDP, according to preliminary data.
This represents an improvement of HUF 126 billion compared to 2024, or roughly 0.5 percentage points of GDP, signaling a modest year-on-year fiscal consolidation.
As of the end of 2025, Hungary’s general government debt reached HUF 64,912 billion, or 74.6% of GDP, based on figures from the National Bank of Hungary. The debt-to-GDP ratio remains above the Maastricht threshold of 60%, highlighting ongoing fiscal pressures despite the improved deficit.
The balance varied across different governmental sectors. The central government recorded a deficit of HUF 4,174 billion, whereas local governments and social security funds posted small surpluses of HUF 49 billion and HUF 66 billion, respectively.
In the fourth quarter, the central government had a deficit of HUF 1,791 billion, local governments a deficit of HUF 104 billion, and social security funds a surplus of HUF 37 billion, the HSCO noted.
Government revenues
Revenue growth supported the improved balance. Total government revenues rose by HUF 2,706 billion (7.9%) compared to 2024. The largest contribution came from taxes on production, which increased by HUF 966 billion (6.9%), driven primarily by a HUF 823 billion (11%) rise in VAT receipts, according to the HSCO.
Social contributions climbed by HUF 776 billion (9.2%), and income taxes rose by HUF 374 billion (6.1%). Other revenues grew by HUF 584 billion (10.1%), reflecting broader fiscal expansion.
Expenditures also increased but at a slightly slower pace. Total spending rose by HUF 2,580 billion (6.7%), with employee compensation up HUF 891 billion (10.6%) and social benefits (excluding transfers in kind) increasing by HUF 671 billion (7.6%). Intermediate consumption rose by HUF 469 billion (6.8%), while interest payments fell by HUF 659 billion (16.6%).
Notably, gross fixed capital formation declined by HUF 246 billion (6.9%), reflecting reduced public investment. Other expenditures increased sharply by HUF 1,455 billion (21%).
In the fourth quarter of 2025, the general government deficit amounted to HUF 1,858 billion (8.3% of GDP), a slight improvement from the previous year despite rising nominal spending. Revenues grew by 10.8% while expenditures increased by 9.8% year-on-year. Read more here.
