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Encouraging Sub-National government Efficiency in Hungary

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  • Alessandro Goglio

Abstract

Hungary's counties and municipalities face difficult challenges. Participation in cost-cutting 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 paper 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 public-sector wages at the local level. Promouvoir l'efficience des administrations infranationales en Hongrie Les départements et les communes de la Hongrie se trouvent confrontés à une série de problèmes. Leur participation aux réformes structurelles lancées par l’administration centrale les oblige à trancher dans les dépenses administratives et à prendre des décisions délicates en ce qui concerne les services publics. Dans le même temps, il faut mener une action permanente de modernisation des infrastructures locales et tirer pleinement parti des financements de l’UE pour les projets de développement. On verra tout d’abord comment une meilleure budgétisation, surtout pour ce qui est de la transparence et du contrôle des comptes, faciliterait cette action. On examinera également les modalités de financement, qui posent un problème général, celui d’une trop grande complexité. Une évaluation des compétences en matière de dépenses montre qu’il serait possible de mieux définir les missions des comtés et des régions et que l’administration centrale devrait exercer moins d’influence sur la prestation des services et sur les rémunérations dans le secteur public.

Suggested Citation

  • Alessandro Goglio, 2007. "Encouraging Sub-National government Efficiency in Hungary," OECD Economics Department Working Papers 565, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:565-en
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    File URL: http://dx.doi.org/10.1787/145235611081
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    Keywords

    autorités infranationales; budgétisation; contrôle des comptes; fiscalité locale; Hongrie; Hungary; marchés publics; partage des impôts; public procurement; public services; services publics; sub-national government; économies d'échelle;

    JEL classification:

    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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