The deficit amounted to HUF 711bn in the first half of 2010, or 5,4pc of GDP, up HUF 151bn or 1,0 percentage point of GDP yr/yr. The deficit ratios compare to a 3,8pc-of-GDP ESA deficit target for the full year. General government revenues were down 4,2pc yr/yr at HUF 2.936bn in Q2 2010 and general government expenditures rose 1,6pc HUF 3.349bn. In the first half of 2010, general government revenues dropped 1,3pc yr/yr to and general government expenditures rose 1,1pc to HUF 6.566bn. According to revised figures for 2009 released on Friday, general government revenue fell 0,5pc instead of a previously reported 0,9pc and expenditure fell 0,7pc instead of 0,6pc last year. The changes compare to consumer price inflation of 5,7pc in H1 2010 and 4,2pc in 2009. Declining items among revenues in Q2 included income taxes and social security contributions, which fell 19,5pc from a year earlier to HUF 559.6bn and 11,1pc to HUF 778.6bn, respectively. Revenues from taxes on production and imports, however, rose 6,4pc to HUF 1,130bn, with VAT payments growing 19,2pc to HUF 603bn. This increase included the effect of a 5pc-point rise in the VAT rate to 25pc as of July 1. Among Q2 expenditures, interest expenditures fell by 9,4pc yr/yr to HUF 273.6bn, and spending on social benefits (excluding transfers in kind) rose 0,9pc to HUF 1,059bn in Q2. Government current consumption fell 0,8pc to HUF 525.8bn, and government spending on wages fell 6,3pc to HUF 691bn. Among spending items with increases in Q2, gross fixed capital formation or investments rose 12,5pc to HUF 204.3bn, and other expenditure rose 20,1pc to HUF 595.2bn.  In the first half of 2010, income taxe revenues declined 18,2pc to HUF 1,100bn and social security contributions were down 9,9pc at HUF 1,572bn. Revenues from taxes on production and imports rose 10,8pc to HUF 2.173bn including VAT payments of HUF 1.186bn. Among expenditures in H1 2010, interest expenditures declined 6,1pc to HUF 566bn. Spending on social benefits (excluding transfers in kind also fell, by 2,3pc, to HUF 2,115bn. Among items showing an increase, gross fixed capital formation or investments rose 10,4pc to HUF 309bn. Government current consumption grew 3,8pc to HUF 1,018.8bn, and government spending on wages fell 0,6pc to HUF 1,461bn.