STRUCTURE of the HUNGARIAN LOCAL GOVERNANCE and FINANCIAL RELATIONS BETWEEN GOVERNANCES

Abstract

Hungary has experienced both socio-economic and political changes from the past to the today. It occupies an important place among European countries. With the passage to free market economy in 1989, the financial and administrative structure of the country has been reshaped. By Local Government Act, imposed in 1990, municipalities have become the key elements of the system of local government as an autonomous structure. especially In the study, local government services and their financial conditions for the satisfaction of these services are discussed. There is still debate about the autonomy of local governments. It can not digress outside of limits set by the central government and own revenues to finance the services they have to provide is inadequate.