Public finance reforms and corporate sector impact: A study of Hungary
Open Access
- 9 April 2021
- journal article
- Published by Virtus Interpress in Corporate Ownership and Control
- Vol. 18 (3), 191-200
- https://doi.org/10.22495/cocv18i3art15
Abstract
The global financial and economic crisis of 2007 and 2008 entailed a sharp deterioration of fiscal positions worldwide; however, fiscal rules soon tightened up in different countries, and parallelly, budgetary discipline improved. A reconsideration of the fiscal policy was necessary as a sovereign debt crisis evolved as a result of the world economic crisis in several countries of the European Union and the eurozone. The study starts at the government debt map of the old member states of the European Union, to which the Hungarian financial positions outside the eurozone are compared. Then, the components of the new Hungarian public finance regulation, major measures, which resulted in an improvement in line with eurozone positions, are presented in full detail. Our study seeks to prove that because of the Hungarian public finance reforms, the fiscal course has also improved, fitting the trends of developed member states of the EU. Although earlier researches have highlighted that it was not only modified fiscal policies that contributed to the post-crisis debt consolidation process in the countries of the eurozone but also the combined effect of the real interest rate and real growth policy. The uniqueness of the study lies in the regulatory instruments, with which the country – positioned in a socialist planned economy, then demonstrating a weak fiscal discipline and sunk in a fiscal crisis even before the global economic crisis of 2007 and 2008 – has consolidated its positions.Keywords
This publication has 15 references indexed in Scilit:
- Resilience in Focus : Certain Mechanisms of the Deepening of the Economic and Monetary UnionPénzügyi Szemle = Public Finance Quarterly, 2021
- Comparative Analysis of Budgetary Indicators of European Municipal Subsystems in the Post-Crisis Term between 2009–2018Pénzügyi Szemle = Public Finance Quarterly, 2020
- Pénzügyi kultúra. Kik, kiket és mire képeznek? Összehasonlító elemzés 2016–2020Pénzügyi Szemle = Public Finance Quarterly, 2020
- Ellenőrzés - a fenntartható jó kormányzás eszközePublished by Akademiai Kiado Zrt. ,2019
- The Pillars of a New State Management Model in HungaryPolgári szemle, 2018
- Rule-Based Budgeting: The Road to Budget Stability1. The Hungarian SolutionPolgári szemle, 2017
- Developmental perspectives on EuropeSociety and Economy, 2014
- Governance regimes, corruption and growth: Theory and evidenceJournal of Comparative Economics, 2008
- From Program to Performance Budgeting: The Challenge for Emerging EconomiesIMF Working Papers, 2003
- Fiscal Adjustments in OECD Countries: Composition and Macroeconomic EffectsPublished by National Bureau of Economic Research ,1996