Hungary's cash flow-based public finance deficit (excluding the figures of local councils) was HUF 134.9 billion in August, the Finance Ministry announced yesterday. The figure was by HUF 32 billion lower than previous projections of Finance Ministry.
Our view: Since beginning of this year Finance Ministry's monthly forecast of cash-flow based deficit was only once more optimistic than final figures. We believe that this indicates that ministry is trying to move towards higher transparency, which, according tour view can contribute to investors’ confidence in Hungary. On the other hand the deficit already reached 78.8% of the annual target, which is not a very good news.