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Government at a Glance: How Hungary Compares presents recent comparable data on key indicators of government activities and performance in Hungary, compared with its neighbouring countries (Austria, Czech Republic, Germany, Poland, Slovak Republic and Slovenia) as well as the OECD average. The main goal of this publication is to identify progress and persisting challenges in public sector reform in Hungary and to highlight some areas where public sector efficiency might be further improved in future years. It provides indicators on a wide range of government activities, including public finance management, public employment and pay, administrative burden for businesses, and the delivery of services in two key areas (health care and education).

This introductory chapter provides background material to help the reader better understand the context of current public sector reforms in Hungary. It starts by presenting a series of indicators on the main macroeconomic aggregates (economic growth rate, unemployment rate, debt and deficit levels). It then discusses trust in government levels before and after the crisis, and public satisfaction levels with government services and institutions, as reported in international perception surveys.

This chapter provides a set of indicators on the trends in administrative burden on businesses in Hungary. It uses mainly the most recent data from the OECD Product Market Regulation (PMR) indicators. The chapter sheds light on the barriers to entrepreneurship, the degree of complexity of regulatory procedures, administrative burdens on start-ups and the number of procedures and amount of time needed to start a company and comply with tax obligations.

This chapter provides a set of indicators related to the performance of the health care system in Hungary. It provides indicators on the general level of satisfaction of the population with health care services, on the evolution of life expectancy and on the evolution of public and private spending on health care. It also sets out measures of access to care, unmet care needs by income level and a series of indicators on the efficiency of the health care system in Hungary.

This chapter reviews the use of digital government services by citizens and businesses in Hungary. It focusses on both simple interactions (e.g. finding information on government websites) and more complex interactions (filing forms on line). Some breakdowns are provided for different categories of citizens (by age group, education level) and by size of company. The chapter also takes a look at a more specific type of digital government service – electronic procurement systems – and their degree of usage by companies in Hungary compared to neighbouring countries.

This edition of Government at a Glance: How Hungary Compares presents recent trends in the Hungarian public administration, at a time when important public sector reforms are taking place. It is a companion to the 2015 OECD Public Governance Reviews: Hungary, which will further analyse the consequences of recent public sector and territorial reforms and provide a set of specific recommendations to achieve further progress.

This chapter describes and analyses the key indicators in public finances helping to shed light on how the Hungarian government is managing its public finances in comparison with its neighbouring countries. Using the System of National Accounts (SNA), it includes indicators on the size of public revenues and expenditures, government production costs and outsourcing as well as on fiscal decentralisation. In order to offer insights on the evolution during the period before and after the economic crisis, most indicators are presented for 2007 and 2012.

In the aftermath of the global financial crisis, the Hungarian government has started an ambitious public sector reform programme with the aim of modernising its public administration and improving service delivery to its citizens and businesses. Tight budget constraints, combined with low trust in government and in public institutions more generally, have made these reforms all the more urgent and necessary, but at the same time very challenging. While the Hungarian government succeeded in reducing its budgetary deficit, leading to its removal from the excessive deficit procedure of the European Union in 2013, the public administration in Hungary, like in many other OECD countries, is striving to meet the legitimate expectations of its citizenry for greater access, responsiveness and quality of public services and to ensure that public money is well spent.

This chapter provides a set of indicators related to the performance of the education system in Hungary. It provides indicators on the general level of satisfaction of the population with education services, on the evolution of Hungary’s Programme for International Student Assessment (PISA) scores since 2003 and on the evolution of public expenditure per student. It also provides indicators on learning outcomes by socioeconomic background and on graduation rates from upper secondary school and tertiary education. Finally, it provides data on the education “premium” in terms of labour market outcome and salary levels in Hungary.

This chapter provides a set of indicators on the trends in public sector employment and compensation in Hungary before and after the economic crisis. It provides indicators on the size of general government employment as a share of total labour force and in absolute terms, on the level and evolution since 2007 of compensation of general government employees as a share of total public expenditure, as well as on the distribution of general government employment by levels of government.