Financial Risk:
Moderate
Score:
50/100
Asset Disposals
Q24
67/100
How effective are controls over the disposal of assets, and is information on these disposals, and the proceeds of their sale, transparent?
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The Ministry of Defence (MoD) has a database on the assets and distribution of military surplus, managed by a department that is responsible for…
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Information on planned disposals is not always published on the ministry’s website. Navigation on the website is extremely difficult, it does not follow logically…
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Financial results of the public procurement notices are publicly available on the website of the HM EI Zrt, that is responsible for selling assets…
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Q25
25/100
Is independent and transparent scrutiny of asset disposals conducted by defence establishments, and are the reports of such scrutiny publicly available?
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Formally, the Supreme Audit institution scrutinised disposal audits; However, in practice, there is no independent scrutiny of asset disposals. There is an internal auditing…
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Most of the equipment of the Hungarian Army could be disposed of any time, but the actual lists of disposal were often influenced politically…
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The reports of the commitee are not classified. However, they are not available to the public [1].
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Secret Budgets
Q26
0/100
What percentage of defence and security expenditure in the budget year is dedicated to spending on secret items relating to national security and the intelligence services?
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Before 2017 the share of secret items was minimal, less than one per cent [1]. However, there’s subsequently been a turning point in terms…
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Q27
25/100
Is the legislature (or the appropriate legislative committee or members of the legislature) given full information for the budget year on the spending of all secret items relating to national security and military intelligence?
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The competent committees of the parliament are given provided with information on all spending related to national security and military intelligence [1]. This takes…
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Q28
75/100
Are audit reports of the annual accounts of the security sector (the military and intelligence services) subject to parliamentary debate?
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Generally speaking, the audit report of the military intelligence service is comprehensive and transparent, it is debated at the competent committees of the parliament.…
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The related committees of parliament (Committee on Defence and Law Enforcement and Committee on National Security) discuss the audit reports of the annual account…
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Q29
67/100
In law, are off-budget military expenditures permitted, and if so, are they exceptional occurrences that are well-controlled? In practice, are there any off-budget military expenditures? If so, does evidence suggest this involves illicit economic activity?
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The Ministry of Defence (MoD) might ask for amendments regarding its budget, but it needs governmental approval. The government tries to plan every military…
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Military-related expenditure occurring outside of the defence budget is well-recorded for the most part. The main exceptions consist of costs financed not from the…
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Off-budget military expenditures have generally been very rare, both in terms of value and occurrence [1]. However, in line with the significant increase of…
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Q30
25/100
Are mechanisms for accessing information from the defence sector effective?
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There is an existing legal framework, but it is not complete. The framework does not describe well what information is and is not available.…
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This indicator is not assigned a score in the GDI. There is an existing framework including the Law on Hungarian Armed Forces (2011. évi…
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As a result of the overclassification, the public rarely accesses relevant information or full information. Important information covered by the CXIII/2011 law can be…
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Q31
50/100
Do national defence and security institutions have beneficial ownership of commercial businesses? If so, how transparent are details of the operations and finances of such businesses?
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The commercial businesses of the MoD (executing disposal, modernisation and providing several logistical services) constitute more than one per cent of the defence budget…
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The operation of the companies owned by the ministry is audited by the ministry [1] and the Supreme Audit Office [2, 3]. Results of…
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Military-owned Businesses
Q32
50/100
Are military-owned businesses subject to transparent independent scrutiny at a recognised international standard?
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The Supreme Audit Office (SAO) audits companies [1, 2], but they are not a fully independent organisation at a recognised international standard. External auditors…
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Supreme Audit Office reports are available online [1, 2]. However, there is no information about how often the SAO audits these companies. There is…
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Illegal Private Enterprise
Q33
100/100
Is there evidence of unauthorised private enterprise by military or other defence ministry employees? If so, what is the government’s reaction to such enterprise?
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According to the Law on Military Personnel, military employees are not allowed to have an additional job or enter into private enterprise without prior…
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No information was found in the media in the last 20 years on the participation of active military personnel and defence ministry employees in…
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Actual Military Spending
Q77
63/100
Is comprehensive data on actual spending on defence published during the budget year?
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The Hungarian State Treasury, the central budget agency under the direction of the Ministry for National Economy, proactively publishes monthly reports on actual defence…
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The reports published by the Treasury Ministry are divided according to the several Ministry of Defence (MoD) sub-programmes (“Ministry of Defence”, “Hungarian Defence Forces”,…
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Details of actual spending are published every month.
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Variance between planned and actual spending for 2019 has been negligible (0.7 percent) [1]. There is no indication that variances are explained [1].
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