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2007 OECD Economic Surveys: Hungary 2007

image of OECD Economic Surveys: Hungary 2007

OECD's economic survey of Hungary 2007 assesses the government’s programme to cut the deficit and reform public spending. It also takes an in-depth look at family policies such as childcare provision and parental leave.

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Encouraging sub-national government efficiency

Hungary’s counties and municipalities face difficult challenges. Participation in costcutting structural reforms initiated by the central government means cutbacks to administrative overheads and tough decisions in public services. At the same time, there are also challenges in modernising local infrastructures and in making full use of the EU funds for development projects. This chapter first looks at how meeting these challenges can be helped by better budgeting, in particular regarding the transparency and oversight of accounts. Financing arrangements are also examined and this reveals a general problem of complexity. Assessment of spending responsibilities suggests room for improving the roles of counties and regions and a need for cutbacks in central-government influence on service provision and publicsector wages at the local level.

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