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Emphasis on centralized procurement - Hungary

Budget institutions may be eligible for 15% to 65% discounts through centralized public procurement procedures, said Bernadett Budai, government spokesperson at a press conference yesterday.

Procurement of airplane tickets for instance saves 20%, approximately Ft 450 million (1.8 million, 2.5 million) for the state. This is how MPs buy their plane tickets as well. In order to decrease costs of public administration, automobile fleet service and dining cheques will be obtained through public procurement. Presently 432 cars are used by ministries, and Ft 300 million could be saved annually through the change.

Evidence of a cheaper state administration includes approximately 50% decrease in the number of executive officers, and 42% less cars used by government institutions. 319 cars have been sold since the current government took office. With centralized procurement procedures it is needless to publish public procurement tenders one by one, as it becomes easier to access additional services such as maintenance or delivery, thus making purchases more efficient, Budai said. (Gazdasági Rádió)