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Costs of state administration to businesses could be cut by HUF 500bn

The cost of state administration for businesses could be reduced by HUF 500 billion, National Economy Ministry state secretary Zoltan Csefalvay said on Monday.

The government could decide on a proposal by the ministry cutting administrative costs by HUF 100 billion by the end of April, Csefalvay said. A final decision on a second package, cutting administrative costs HUF 400 billion, could be taken by the end of the year, he added.

The system has to be restructured to prevent these costs of bureaucracy from showing up again, he said.

Csefalvay said the reduction in costs would not cause a fall in budget revenue, but declined to reveal any further details.

The costs to businesses of state administration comes to more than 10% of GDP of which HUF 800 billion is considered a burden, he said.