Enforcing budget discipline in Hungary and abroad

Abstract

In October 2007, the Hungarian government submitted to parliament a bill on a fiscal responsibility framework. In this article, the concept and inner logic of the bill as well as some social and future political issues related to the bill but pointing further ahead are to be considered. Within the framework of the above, the European practice as well as a few months earlier concept of the Ministry of Finance on a similar issue, are to be examined. The article is meant to be part of the discourse on the bill. Two problems are to be considered: •the first question to be examined is whether the bill submitted can be regarded as the best possible proposal considering narrower professional criteria and •the other question is if there is a consensus on the broader institutional and social political consequences of the bill, if once passed. As intended by the proposers of the bill, Parliament is to make a decision on the issue only after a comprehensive professional and parliamentary debate sometime in spring 2008. At the time of writing this article, we are thus at a relatively early stage of legislation. Both the professional content of the bill and the political support for it are still fluid. The approach outlined above is thus, in my opinion, still justified.