Hungary's 2016 budget deficit to exceed 2pc/GDP

BUDAPEST: Hungary's 2016 budget deficit will exceed 2 percent of gross domestic product after increased spending late in the year but remain below European Union limits, Prime Minister Viktor Orban's chief of staff said on Wednesday.

"The deficit will come in over 2 percent, which will be in line with European Union requirements," Janos Lazar told a news conference in response to a question. The EU sets a 3 percent of GDP limit for member states on annual budget shortfalls.

In October, Orban's government, which faces an election in early 2018, lowered its full-year deficit forecast to 1.7 percent of economic output from 2 percent after a big surplus in September.