Are you sure?

Hungary public procurement-to-GDP ratio well under EU average

Public procurements in Hungary were worth 5.66% of GDP last year, according to preliminary data from the Central Statistical Office (KSH), well under the 17% rate for the entire European Union, Transparency International (TI) told MTI.

Hungary's public procurement market has been contracting since 2006 and the value of public procurements fell more than HUF 300 billion in 2010, TI said, citing a survey it made with the Foundation for Modern Public Procurement. TI said the drop could be explained by the removal of some areas of public procurement from under the law as the result of amendments to legislation made in 2010. The introduction of mandatory electronic procurements added another two months to procedures last year, it added.

TI said Hungary should focus on “big” players that “forget” to call public procurements, rather than small players.

The number of public procurement procedures in Hungary rose 61.6% to 10,685 in 2010, but their combined value fell 17.3% to HUF 1,496.5 billion, Public Procurement Council chairman Róbert Gajdos said at a press conference.