The Finance Ministry reported yesterday it projects HUF 159.2 bn budget deficit for April and HUF 1,283 bn for 1H06. The 1H06 budget deficit forecast represents 83% of the revised 2006 target, which the Ministry reduced from HUF 1,545.8 bn to HUF 1,542.5 bn, according to online business newswire portfolio.hu.
We see the news as neutral, however, we would highlight that the market is looking for the new government’s announcements about how to curb the budget deficit as soon as possible.