Hungary sees possibility of undershooting 2017 budget deficit target


BUDAPEST, Dec 7 (Reuters) - Hungary'sEconomy Ministry expects hundreds of billions of forints worth of additional European Union development funds to flow in by the end of the year, it said on Thursday, adding that there was a possibility of undershooting its 2017 deficit target.

Earlier on Thursday data showed a jump in the January-November shortfall to 1.639 trillion forints as the government pre-financed large chunks of EU-backed development projects.

However, the ministry told Reuters in an emailed response to questions that substantial further EU funds would arrive by the end of the year and the funds arriving thereafter would help lower Hungary's public debt faster with some delay.

It said the local government sector also ran a substantial surplus, which would also help reduce Hungary's debt as part of the excess funds would curb the overall financing need.

Hungary's 2017 budget projected public debt falling to 71.9 percent of GDP by the end of the year.

This article appears in: Politics , Stocks , World Markets , Economy

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