Are you sure?

Govt to modify individual subsidy system - paper

The government is looking to provide more help toward job creation and local suppliers in a modified version of the individual subsidy system (EKD), a copy of which was obtained by business daily Világgazdaság.

The system was introduced in 2004. To date 82 projects created 40,041 jobs instead of the 33,195 they had promised up to 2019 with investments of HUF 1,633 billion. These investments have received state subsidies totaling HUF 144 billon, Világgazdaság said based on official data. The average grant was HUF 4.35 million for one job.

However, local suppliers will not be eligible in the new system if 80% or more of their production serves projects that have already received individual subsidies, and the required minimum levels of investment and number of new jobs promised will be raised, the paper said.

Some industries, among others, projects worth more than HUF 50 million in tourism, investments into steel manufacturing or the use of agricultural products outside the food industry will no longer be eligible under the new system, the paper said.

The general impact of the projects on GDP growth and development of disadvantaged regions will also be more emphatic, according to the modifications.