Reasons and theoretical basics of modernizing Hungary's planning system

Abstract

Planning in the public sector is a must, a process that is shaped by constant learning. It is applied in every country regardless of social-economic regime. There are hardly any opinions today that would deny that governments (meaning general governments or “the state”) need to shape, direct and control the part of social-economic processes that relate to the public sector – while taking into consideration the endeavours of other players. In every capitalist country, market players , central and local government entities and other parties all perform budgeting, and then act on the basis of those plans. One basic role of the general government is to do the planning work of matters that concern the entire country, perform coor dination regarding sector-specific/thematic issues that are for the state to handle and to regulate lower level planning. Comprehensive government planning is equally indispensable for the efficient management of finances, for orienting the market, for organizing public services, for the simultaneous enforcement of social, environmental and heritage protection considerations and for accountability. This is the most viable way of comprehensive problem management, interest harmonization and decision making (managing the mix).