The Finance Ministry announced its budget deficit forecasts on Friday. The Ministry expects HUF 110.5bn deficit for May, HUF 265.3bn for June and HUF 1280bn for 1H06. The six-months’ budget deficit would reach 83% of the annual target, or 5.5% of the GDP if the forecast would turn out to be correct. The Ministry said, lower revenues and higher than expected expenses will boost the June deficit. We see the projected June budget deficit as a slight negative surprise.