Hungary becomes EU’s most expensive state to run all the while underfunding healthcare

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Education spending faced similar struggles. Though the government allocated HUF 2,901 billion (EUR 7.22 billion), a 12% increase in nominal terms, the nation’s inflation rate of 17.6% meant that in real terms, spending actually decreased by 5.6%. This leaves Hungary trailing behind the EU average, with the country spending 3.9% of its GDP on education compared to the EU average of 4.9%.

At the same time, state propaganda received more

Despite cutbacks across essential public services, there was one notable exception: government propaganda. The Prime Minister’s Cabinet Office, led by Antal Rogán, received HUF 18.1 billion (EUR 45 million) more than originally budgeted for government communication tasks, alongside HUF 35.5 billion (EUR 88.4 million) extra for events.

Meanwhile, the country’s defence and law enforcement sectors also felt the pinch. The 3.2% budget cut, when adjusted for inflation, amounted to a real-term reduction of 21%. This drastic decrease in funding left security forces under strain, with rising debts accumulating towards the end of the year, necessitating emergency financial interventions.

PM Orbán (left) and Antal Rogán (right). Photo: Facebook/Orbán Viktor

Hungary’s high costs extend beyond public administration. The state also stands out for its generous spending on business subsidies and cultural activities, which includes sports and religious support. These areas have long been a priority for the Orbán government, often at the expense of healthcare and education.

In conclusion, the data highlights the stark imbalance in Hungary’s budget priorities, as the country allocates disproportionately high sums to operating the state while underfunding vital sectors like healthcare and education. This spending pattern raises significant concerns, especially given the country’s ongoing economic challenges and rising inflation.