The continuous development and efficiency-focused updating of the control mechanisms of public finances is a prerequisite of stable public finance management, Minister of State for Public Finances Péter Benő Banai said at the opening ceremony of the Public Internal Control Conference initiated by the European Commission’s Directorate-General for Budget in Budapest.

The Government of Hungary has been fully committed to pursuing a sustainable fiscal policy and stable public finances, he stated. One of the instruments for ensuring stability is the timely publication of budget bills. It has been the third year now that the parliament adopts next year’s budget in the spring of the previous year, instead of autumn, he stressed. For the projections in next year’s budget the favourable macro-economic data compiled recently have been used, and positive trends are expected to persist, he added.

The economic policy of the Government has proven to be successful year after year, providing sufficient funds that are required for the management of public finances and the implementation of the state budget. But none of our economic policy measures could have been successful without the support of an internationally recognized regulatory and monitoring system of public finance management that operates in accordance with the highest possible professional standards, Péter Benő Banai said.

In terms of public finance management, Hungary has come a long way in the past decades, since the State Audit Office was established, the central regulatory system was implemented and the European and international legal harmonization process was completed. A major milestone among these events was the adoption of Hungary’s Basic Law, in which – unlike in the former Constitution – an entire chapter has been devoted to public finances. Thus, the principle of responsible fiscal management has been elevated to the highest regulatory level, stipulating that the state debt-to-GDP ratio must be reduced and public finances must be managed in a transparent and expedient manner, the Minister of State stressed.

Péter Benő Banai welcomed the fact that Hungary has been chosen to host the EU-level forum, where besides representatives from the 28 member states there were participants from aspiring members as well. The event has focused on the development of the regulatory and controlling system of public finances. It was also a forum to share useful information and experiences regarding best practices, innovations as well as present and future challenges.

(Ministry for National Economy)