Hungary’s public finances are in order, enabling the government in 2025 to secure funding for a wide range of support programmes for families, pensioners, young people and businesses, the National Economy Ministry said in a detailed report published on Thursday.
The ministry said budget stability was preserved despite a challenging external economic environment. It cited measures including the fixed 3 per cent Otthon Start housing loan, a fixed 3 per cent loan scheme for small and medium sized enterprises, an increase in family tax allowances, personal income tax exemption for mothers of three, a 30,000 forint food voucher for pensioners and the Demján Sándor Programme.
According to the report, tax and contribution revenues exceeded expectations in 2025 and separate state funds recorded a surplus, while spending increased on transport and public utility services, healthcare and pensions. The central subsystem of public finances closed the year with a deficit of 5,738.7 billion forints.
Within this, the central budget posted a deficit of 5,500.1 billion forints, social security funds recorded a deficit of 245.9 billion forints, while separate state funds showed a surplus of 7.3 billion forints. The ministry noted that the 2025 cash based deficit was increased by 248 billion forints because the European Commission delayed transfers at the end of December, with more than 200 billion forints arriving on 14 January 2026.
Taking this into account, the ministry said the cash based deficit developed in line with plans. Compared with 2024, tax and contribution revenues rose by 8 per cent, with consumption related taxes increasing by 9.5 per cent.
Interest expenditures reached 4,197.8 billion forints in 2025, up by 584.7 billion forints from a year earlier. Spending on public transport and utility services rose to 2,652.3 billion forints, reflecting higher road network availability fees and increased payments to water utility providers.
Expenditure on pensions and pension-like benefits exceeded the previous year, with total payments including the 13th month pension reaching 7,300.6 billion forints, while spending on healthcare services amounted to 2,916.3 billion forints.
The ministry said the EU methodology based budget deficit was estimated to align with the government’s 5 per cent of GDP target. Total revenues of the central subsystem rose to 39,191.6 billion forints by the end of December, up 2.9 per cent year on year, while expenditures increased by 6.9 per cent to 44,930.4 billion forints.
Central government debt increased by 5,060.7 billion forints by the end of 2025. Net forint issuance accounted for 3,874.3 billion forints of the increase, while net foreign currency issuance contributed 2,405.5 billion forints. The strengthening of the forint reduced the forint value of foreign currency debt by 1,153.6 billion forints, the ministry added.
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