EXCERPTS ON NEW HUNGARIAN STATE FINANCES FROM LEGAL, ECONOMIC AND INTERNATIONAL ASPECTS

  • Csaba Lentner Public Finance Research Institute at National University of Public Service – Public Administration Faculty, 2 Ludovika tér, Budapest, Hungary http://orcid.org/0000-0003-2241-782X
Keywords: fiscal and monetary policy, crisis management, state financial consolidation, rule-based budget, European Union, IMF, Hungary

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.

Author Biography

Csaba Lentner, Public Finance Research Institute at National University of Public Service – Public Administration Faculty, 2 Ludovika tér, Budapest, Hungary

PhD, Full Professor, Head of the Public Finance Research Institute

Published
2018-07-25
How to Cite
Lentner, C. (2018). EXCERPTS ON NEW HUNGARIAN STATE FINANCES FROM LEGAL, ECONOMIC AND INTERNATIONAL ASPECTS. Pravni Vjesnik, 34(2), 9-26. https://doi.org/10.25234/pv/5996
Section
Preliminary communication