Hungary plans downsizing, wage freezes, staff cuts

Hungary's Economy Ministry has released important new information alongside the schedule of passing the 2012 Budget Act on its website. According to the release, the government is planning to consider mergers in the public sector, is determined to achieve significant staff cuts, and keep wage costs at the current level.

The Economy Minstry has released a detailed schedule on its website for the procedure of approving the 2012 Budget Act. Based on the document, talks on the ministerial level are scheduled to begin tomorrow, with each ministry submitting its own proposal. The draft will be discussed in a cabinet meeting on 21st September and is to be submitted to Parliament on 30th September.

The 39-page document reveals a great deal of additional information on budget planning. Key criteria include "considering the possibility of mergers or closures of governmental organizations while ensuring the continuity of public services", and (under the "streamlining" header) "significant staff cuts" and "in-depth analysis of possibilities for reducing material costs" are being called for.

The document also comments on wage trends for civil servants next year. The Ministry notes that "at the current phase of planning, compensation bases should be considered unchanged; staffing budgets cannot be increased in order to approve wage hikes"