He told MTI that institutions whose operation is expensive or unnecessary would be eliminated. Their tasks will be taken over by the ministries or government offices.

Lázár said the merger of such support institutions into ministries was expected to result in a 20% staff cut. On top of this, the Prime Minister’s Office calculates with a 15% staff cut in state administration in the 2017 budget.

The staff cuts could allow pay rises later on, an incentive for more efficient work at government offices, he said. After decisions are taken on the support institutions, stateowned companies will come under scrutiny, he said.

“We are not the first government since the change of system to talk about a reduction in bureaucracy, but we are the first that will actually do it.”

“I am aware that this will generate enormous controversy, but after the reduction in bureaucracy, living and doing business in Hungary will become easier.

Even those who protest now because of the loss of their privileges will benefit from this process,” he said. Scaling back Hungary’s bureaucracy will improve the country’s competitiveness and boost economic growth, Lázár said.

About 20% of employed Hungarians work for the state, which is unsustainable, considering the rate is under 10% in Poland and under 13% in the Czech Republic, he said.

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