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WB says rewards necessary to achieve improvements

World Bank officials praised Hungary’s government for steps it has taken to crack down on the shadow economy at a conference in Budapest on Thursday, but they said rewards as well as sanctions are necessary to make further improvements.

The World Bank presented a study, on how to reduce the number of shadow economy jobs at the conference, which was organized together with the Ministry of Justice. Gordon Betcherman, the World Bank’s project director for the study, said the government has taken big steps to squeeze the shadow economy -- the study mentions stricter tax and employment audits as well as bigger fines -- but positive incentives are necessary too, not just sanctions. The study estimated Hungary’s shadow economy generates 15-25% of GDP. (MTI-Econews)