With implementing the administrative simplification process Hungary succeeded in reducing administrative burdens with 25 percent. The promise originally meant to lower entrepreneurial administrative necessities, but the government was able to realize this reduction on the whole population. Unnecessary bureaucratic burdens were eliminated in 228 processes, so less paperwork, forms and standing-in-lines will burden the citizens. With the simplification of directives and shortening of administration periods, enterprises got rid of useless obligations in 96 processes. Also, formal simplification has been carried out on the legislation process, with which more than 3400 unneeded parliamentary resolutions and other decisions were repelled.
With the Magyary Zoltán Public Administration Development Program, the government aimed to reduce bureaucracy and administration to curb on complex and unpredictable state regulations. In the content of the Magyary Program, the government implemented the Administrative Simplification Program for the reduction of residential administrative burdens and the Simple State Program to mitigate the administrative burdens of enterprises.
The Simplification Program reduced administrative burdens in 15 areas and 228 processes (a total of 249 with sub-processes). Among these were affairs of taxation, citizenship, family, matrimonial and property-related matters, employment, pension and social affairs.
Out of the 114-point Simple State Program package, 96 points were implemented by the end of last December. The simplifications achieved in taxation, employment, construction engineering, food industry and field of public administration have significantly reduced the bureaucratic burdens. Implementation of the last ten actions is still pending, they are expected to be completed in early 2014.
Prior to this, the government has already carried out steps in order to reduce the administrative burden of the businesses sphere. With creating the conditions in public services for a One Stop Shop, citizens will soon have the opportunity for deal with administration with this citizen-centric service delivery model; for businesses to provide data through the individual pension insurance registration form is no longer a must, and the flat tax system has been introduced. In addition, the statutory audit threshold has been raised to 200 million HUF, leaving more than 17,000 small and medium-sized enterprises to be exempted from the application of an audit. The actions of the government reduce the bureaucratic administrative costs of entrepreneurs with hundreds of billions of forints.
During the Formal Deregulation, 1035 parliamentary decisions, 1971 governmental and Council of Ministers' public decisions and 460 laws and provisions were brought ineffective. In addition, contrary to the rules before 2010, the automatic legal technical deregulation embedded in the legal system today serve technical deregulation built into the legislative process. This measure contributes to a more transparent legislation and improves the quality the preparation of legislative acts.
(Ministry of Public Administration and Justice)