Hungary’s State Audit Office (ÁSZ) urged the FinMin to pay special attention to the preparation of impact studies and analysis necessary to draw up new budget rules in a report published Thursday.
The report was based on an audit of the Finance Ministry and institutions it oversees carried out between 2004 and the H1 of 2007. Before signing contracts on subsidies for projects, the ministry must more carefully consider risks, such as higher-than-expected costs and possible conflicts with the government’s reform program, ASZ said. The ministry also needs to rethink the internal oversight system for the budget. It must determine why residuals are left at ministries and take legal steps, if necessary, to correct the situation. ÁSZ acknowledged steps the ministry has taken to make budget reforms, though it noted that earlier governments attempted, but failed to implement, budget reforms in 2000 and 2004. (MTI-Econews)