Hungary becomes EU’s most expensive state to run all the while underfunding healthcare
In 2023, Hungary officially became the European Union’s most expensive state to run, with the government spending 8.1% of its GDP on public administration, security, defence, and local municipalities. This expenditure—outlined in a recent budget report submitted to Parliament—places Hungary ahead of all other EU member states, where the average is 5.9%. While Hungary’s lavish spending on state operations stands out, its healthcare system remains severely underfunded, drawing sharp criticism.
Hungary spends too little on healthcare, education
The financial report revealed that, while the state spent HUF 6,119 billion (EUR 15.23 billion) on its operations, healthcare received a mere 4.7% of GDP, placing Hungary at the bottom of the EU rankings, Népszava reports. In comparison, the average EU country allocates 7.7% of GDP to healthcare, significantly more than Hungary. Despite an increase in nominal terms to HUF 3,554 billion (EUR 8.85 billion), high inflation caused the real value of healthcare spending to drop by 7.8%, a reality that healthcare professionals and the public are increasingly feeling.
Photo: depositphotos.com
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.
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7 Comments
The Real Person!
The Real Person!
Most expensive government administration? Could it possibly be due to corruption? Explain it to us Fidesz believers.
The Real Person!
The Real Person!
Orban – Fidesz Government – where DOES it GO ?
Doesn’t go into Education.
Doesn’t go into Educators pat packets.
Doesn’t go into Heath Care – Hospitals – the CITIZENS needs that should be trough USE of such Funding.
Doesn’t go into Railways.
Doesn’t go into Public Transport System.
WHERE does it GO ???
The “Palms greased” of Fidesz” ?
Where does it GO ?
Fact – we know Orban and the “Dud” Minister of Finance – Mihaly Varga – have literally STUFFED the Hungarian Economy, but that’s no excuse for the subject matter of this article.
WHERE Does it GO.
Hungary – the country overall – the rich get richer and the poor get poorer.
Hungary we have 1.1 fellow citizens living in POVERTY.
Hungary the CRISIS looking at Infrastructure is verging on a cataclysmic COLLAPSE, that’s on top of the Forint – collapse and the Economic outlook of our country.
Where does it GO ?
NEVER, never, never, never THINK fellow Hungarians – we as a country can be SELF Supported NEVER.
EXPLODING – Government debts from Borrowings – China and Russia.
European Union Debts – from Fines through non-compliance – breaking of European Union Membership Laws – these Debts with compounding interest clauses applied to them – GARGANTUAN.
WHERE are the Orban – Fidesz Government spending it ?
I don’t THINK they have any SPENDING true capabilities that is WORSENING.
The Real Person!
The Real Person!
I hate to repeat myself, but average Hungarians receive more healthcare than most western citizens. If Canadians visited doctors as often as in Hungary, there would be an investigation for over-service. Hungary also covers such things as spas and Recovery Centers’s stays for two weeks after heart surgery.
Some hospital buildings may be old and not air conditioned, but the service Hungarian doctors and nurses provide is the very best. If any change should be made is the increase of salaries of physicians, nurses and other health care providers.
The number say it all really. A deliberate and chronic underfunding of critical public services while state administration is the most bloated in the EU, suggesting Hungary should be a paragon of efficiency when it comes to interacting with its hapless citizens but it clearly isn’t. I know someone that spend nearly 2 years waiting to start receiving a state pension after requesting it. Not mentioned is the fact that Hungary spends a higher percentage of its state budget on servicing its debt pile than any other EU member, more even than Greece that famously nearly went bankrupt not so very long ago. It’s also worth bearing in mind that the economy is misfiring and despite the high tax burden via things like Europe’s highest rate of VAT and zero annual tax free allowance, there simply isn’t as much money to play with as there should be in a healthy economy so it’s actually a double whammy. The state has lower levels of funds to distribute AND allocates too little of what they do have to things like healthcare, education and the railways leading to the crumbling situation we have today. At this juncture we’ve not mentioned the Euro billions sitting on a bank account in Brussels that other regional countries are benefitting from, all this adds up to an almighty **** storm of epic proportions. I’m starting to thing a monkey could do a better job of running the country, they certainly wouldn’t do any worse.
Maria, you’re completely deluded if you think there’s any basis for comparing Hungary’s healthcare system with a western country. It’s very likely to be Hungary’s worst attribute, this is a fact quite aside from politics. It’s massively underfunded with endless waiting lists, crumbling buildings and often hostile staff (I can’t blame them considering the conditions they have to work under). I’d rather return to the UK to get a paper cut attended to before I’d walk into a state run healthcare institution in Hungary. I paid privately to have a scan at Semmelweis hospital in Budapest and true to form, there was no soap or toilet paper in the restrooms. In the country’s premier teaching hospital.
The Real Person!
The Real Person!
MariavonTheresa my wife is a Hungarian physician and we are in touch with physicians in Hungary on a regular basis. Everything you are writing is a complete load of crap.
The Real Person!
The Real Person!
Having used and visited Hungarian public health care and hospitals plenty, I can also say that Maria´s claims are BS. All public hospitals are in bad shape and without AC. Dedicated staff members are rare, which is understandable as those who can, go to work abroad or work in private clinics. About that two week “spa” after surgeries, many do not want to go as these rehabilitation centers are in just as bad conditions as hospitals – and they provide zero privacy as you are put in an open room with a group of other patients. Those who have someone to look after them at home, most often choose to decline that two week rehabilitation.