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Long term economic outlooks

Analysis

The government’s plan to introduce a doctor’s visit fee for patients next year is projected to bring in extra revenues of Ft 30 billion-Ft 35 billion, while cutting free drug will also help toward reducing the country’s gaping health care deficit. Downsizing Hungary’s bloated public administration by about 15,000 in the next two years in line with government plans, on the other hand, will be costly from the start as hiving off a single employee will cost the state about Ft 1 million. Pension reforms will begin in earnest only in 2009, but planned adjustments till then will expend about Ft 130 billion, Napi said. Changes in education will mainly focus on cost efficiency and will not burden the state considerably, while the tuition fee, scheduled to be introduced in 2008, is expected to alleviate state spending on education, Napi said. (Napi Gazdaság)

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