Outstanding debts of Hungarian public institutions reach a historic high

Much of the debt has accumulated towards suppliers, which is not only a budgetary problem, but can also threaten the operation of private companies. Of the total debt, only HUF 1.3 billion is tax debt, HUF 22 billion is arrears to utility companies and HUF 85 billion is overdue receivables from unpaid invoices for goods and services.

Roughly one in two public institutions (285 out of 559) have overdue debts, with HUF 51 billion overdue for more than 60 days. Hospitals and clinics account for 70% of the total arrears (HUF 90 billion). In addition to health institutions, the police and the penitentiary system fraternally share the outstanding invoices of HUF 34 billion.

As most of the institutions belong to the Ministry of Interior, the government will have to find the resources to settle them, as the Ministry has no revenue of its own.

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