Navigation path

Public finance reform in Hungary: light at the end of the tunnel? - László Jankovics

Author(s): László Jankovics (Directorate-General for Economic and Financial Affairs)

Public finance reform in Hungary: light at the end of the tunnel? - László Jankovicspdf(120 kB) Choose translations of the previous link 

The dominance of electoral considerations in determining budgetary outcomes has been evident in Hungary over the last 15 years, with government deficits reaching their highest levels in election years (1994, 1998, 2002 and 2006). This deterioration of public finances has largely been possible due to the weakness of fiscal governance. In the current decade, fiscal laxity was particularly strong until mid-2006; the country was even said to be suffering from a form of “fiscal alcoholism”. In this Country Focus it is argued that the recently unveiled comprehensive proposal to reform Hungarian public finances is an important step towards curing these institutional weaknesses, even though there is still room for improvement. It is crucial that the reform is based on a broad political consensus so as to ensure its credibility and durability.

JEL classification    H 10, H30, H61, H62, H72

Your feedback is welcome!
Please send any comments or suggestions to the email address given at the end of each issue.

(Country Focus 4. February 2008. Brussels. 6pp. Tab. Graph. Bibliogr. )

Additional tools

  • Print version 
  • Decrease text 
  • Increase text