Excerpts on New Hungarian State Finances From Legal, Economic and International Aspect

Abstract

The Hungarian national economy, struggling with public finance debts, low efficiency in budgetary policy and a weak control potential, had reached a state of crisis by the middle of the 2000s, which deepened further by the time of the 2007-2008 crisis. From 2010 onwards, as opposed to the conventional crisis management method of the International Monetary Fund (IMF) and the European Union, which was based on budgetary restrictions, adjustments were made to the budget. In 2013, the Hungarian central bank, which did not use conventional crisis management instruments either, joined in, thus becoming an institutional part of the state financial system. It was confirmed that the central bank can help fiscal consolidation and growth potential while still being able to preserve its independence. Conditions were established for the -non-conventional -rules of both fiscal and monetary interventions within the highest level national regulatory framework of the law, compliance with which is ensured by legislative and institutional guarantees.

Relationship between Corporate Sustainability and Compliance with State-Owned Enterprises in Central-Europe: A Case Study from Hungary

“…The increasing state control and the appreciation of the ownership system of the OECD member states examined by the OECD were also observed in Hungary after 2010 (OECD, 2019). The Hungarian economy has been struggling with deepening problems since the early 2000s: the public debt, low efficiency fiscal policy and weak control potential continued to deepen during the 2007-2008 crisis [35]. The change has been evident in many areas since 2010.…”

“…Expectations were formulated in a very high level of legal regulators: Article 38 (1) of the Hungarian Fundamental Law states that "State and local governments shall own property. The purpose of managing and protecting national wealth is to serve the public interest, to meet common needs and to conserve natural resources, and to address the needs of future generations" [35]. Article 5 (5) states that "State and local government-owned enterprises shall operate in the manner prescribed by law, in an autonomous and responsible manner, in accordance with the requirements of legality, expediency and effectiveness".…”

Compliance Audit Issues of State-owned Business Associations

“…The increasing governmental supervision and the appreciation of the owner's instruments established by the OeCd with respect to the member states examined had been noticeable in our country as well after 2010 (Boros, 2017). since the beginning of the 2000s, the Hungarian national economy has had deepening problems: the debts of the public finances, the low efficiency of the budget policy and the poor audit potential deepened further during the 2007-2008 crisis (Lentner, 2018;Lentner, 2019). As it had been explained by Csaba Lentner in his well-known study (Lentner, 2015b) • in developing the effective and useful audit system, and last but not least, in strengthening the Fiscal Council in the Fundamental Law (Kovács, 2016;Kovács, 2014;domokos, 2011).…”