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Strengthening the Management of Public Spending in Hungary

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Author Info
Jaromir Cekota
Rauf Gönenç
Kwang-Yeol Yoo

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Abstract

This paper analyses the Hungarian public expenditure system and develops policy-oriented recommendations for its improvement. Despite substantial progress achieved in the management of public finances over the 1990s, the level of public expenditure and taxation relative to national income has been comparatively high while the budget process has continued to be driven by short-term considerations and remains input- rather than output-oriented. The government’s economic pre-accession programme submitted to the European Commission for the time period 2002-04 needs to be complemented by a thorough public expenditure reform in order to achieve its ambitious targets, implying significant fiscal tightening. This reform entails the development of a medium-term, output-oriented expenditure framework characterised by transparent and comprehensive budget procedures for all fiscal activities of the general government. Effective spending in areas critical for future growth performance -- ...

Améliorer la gestion des dépenses publiques en Hongrie

Cette étude analyse le système des dépenses publiques de la Hongrie et développe des recommendations de politique pour son amélioration. Malgré les progrès réalisés dans la gestion des finances publiques dans les années 1990, le niveau des dépenses publiques et des impots par rapport au revenu national reste relativement élevé, alors que le processus budgétaire est détérminé par des considérations de court terme et se concentre sur des financements d'inputs plutot que de résultats. Le programme économique de pré-accession soumis à la Commission Européenne pour la période 2001-2004 devrait etre complété par une réforme profonde des dépenses publiques pour atteindre ses objectifs ambitieux - qui nécessitent d'importantes économies budgétaires. Cette réforme devrait se baser sur un cadre de dépenses à moyen terme orienté sur les résultats, utilisant des procédures transparentes et exhaustives couvrant l'ensemble des activités des administrations publiques. Des dépenses efficaces dans ...

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File URL: http://dx.doi.org/10.1787/568000451454
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Publisher Info
Paper provided by OECD, Economics Department in its series OECD Economics Department Working Papers with number 336.

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Date of creation: 30 Jul 2002
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Handle: RePEc:oec:ecoaaa:336-en

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Related research
Keywords: budgetary transparency; contingent liability; extra-budgetary funds; fiscal discipline; general government; multi-year budgeting; programme evaluation; public expenditure; administration publique; budget pluriannuel; dépenses publiques; discipline budgétaire; engagement contingeant; évaluation des programmes; fonds extra-budgétaires;

Find related papers by JEL classification:
H0 - Public Economics - - General
H1 - Public Economics - - Structure and Scope of Government
H4 - Public Economics - - Publicly Provided Goods
H5 - Public Economics - - National Government Expenditures and Related Policies
H6 - Public Economics - - National Budget, Deficit, and Debt
H7 - Public Economics - - State and Local Government; Intergovernmental Relations

Cited by:
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  1. Vratislav Izák, 2004. "Public Debt Service, Interest Rates And Fiscal Variables In Transition Countries," Prague Economic Papers, University of Economics, Prague, vol. 2004(1), pages 3-15. [Downloadable!] (restricted)
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This page was last updated on 2009-12-15.


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