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  1. 1 Kozgazdasagi Szemle (Economic Review)

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  1. 1 2009

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  1. 1 Vigvari A.

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ATYPICAL LOCAL-GOVERNMENT INDEBTEDNESS IN HUNGARY (Atipikus onkormanyzati eladosodas Magyarorszagon)

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Vigvari A.
Kozgazdasagi Szemle (Economic Review)
|
2009
|
vol. 56
|
issue 7/8
709-730
EN
The paper sets out to examine the local-government system in Hungary, starting from an atypical pattern of indebtedness among LGOs in recent years. One symptom of the atypical indebtedness is atypical local government. It argues that this as another factor behind the break-up of the Hungarian local-government model and also a cause for further changes. Having presented the main features of this Hungarian local-government model, the author draws attention to the financial structure, before analysing the effect of the indebtedness on the sustainability of the budget. The paper looks at the possibility of handling the problem in the short term, within the frames of the existing model, but points out that the indebtedness is a further obstacle to paradigmatic reform. Finally it advances two possible scenarios for a systemic solution to modernization.
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