[ad_1]
Starting May 11, we will only provide our Signature content to our readers with single access. Learn more
The table below clearly shows that the government is mitigating the effects of the viral crisis (and the growing supply of distributable money in Hungary due to the drop in the forint). the number of grants awarded increased. From April 12 to May 7, the Administrative Authorities made 837 new grant decisions outside the Rural Development Program, preceded by 225 from March 3 to April 11. The combined dynamics of the two months shows even more that
The distribution of subsidies in Hungary has been so annoying that we have not seen in many years.
The following table also shows that Since April 12, most support decisions have been made in the Operational Program for Economic Development and Innovation (EIDHR) and the Operational Program for Regional Development and Settlements (TOP), 360 and 459 respectively, and also 225 decisions in the Rural Development Program (VP).
At the moment, we do not see any outstanding value in the amount of grants awarded: Until mid-April, the authorities awarded the winners 104 billion HUF and, since then, an additional 75 billion HUF. If, on the other hand, we look at the two months together, that is, since the outbreak of the virus in the home, then the figure of 180 billion is undoubtedly also the strongest two months of the last good year.
After the announcement of the grant winners, in the current viral situation, the progress of the grant has also recovered and perhaps even more quickly to the accounts of those affected. So if there is no public procurement obligation then these are the money allocated can enter the economy quite quickly following the fulfillment of orders. This, in turn, could be an important reinforcement for many sectors of the economy in the current context of lack of demand.
However, the paid help volume does not show a jump:
According to our data, since the virus crisis that erupted in early March, 8 trillion HUF was paid in the 8 largest programs (156 trillion HUF in March and 67 trillion HUF from mid-April to early May).
If we look at the volumes of monthly and one-year payments at the level of the 8 main Operational Programs, it can be seen that the largest payments were made at EFOP, EIDHR and TOP.
Due to the fall in forint, the government gave permission to recalculate the indicative framework (theoretically distributable) of development programs at the exchange rate of 332.16 euros / forint, and compared to this, due to the overflow target of 10%, finally required 10 by the end of the year, 1,295 billion HUF of tender funds will be distributed (commitment objective). Recalculate the four main indicators so far with the new indicative frameworkIt turned out that the volume of tenders announced now could be around HUF 10.5 billion, exceeding 111% of the indicative 7-year budget. Compared to this, the budget covered by the winners is already HUF 9,714 billion (103%), the payments are HUF 7,310 billion (almost 78%), while according to our calculations the total budget drawn from Brussels can amount to HUF 3735 billion so far (7-year budget is approx. 45%).
Cover image source: MTI / Prime Minister’s Press Office / Zoltán Fischer
[ad_2]
