Notoriously repeated budget policy

Abstract

Since the end of the communist regime it has been an obvious, what's more a normal phenomenon in Hungary that public finances are never balanced. The only surprise might be that the rate of the deficit is not outstandingly high compared to the other transition countries in Eastern Europe. In this brief paper I will attempt to outline: X why Hungary has been unable to reduce the rate of the deficit at least to the Central European average; Y what factors affect economic policy makers as a result of which the deficit – which is the consequence of their measures – becomes important for them only in case of external funding constraints; Z if the budget deficit that has so far been regarded normal can be reduced by means of laws, by establishing the so called rules based budget policy and its institutional systems.