In order to meet the deficit target in 2013, further layoffs are expected in the public sector, daily Magyar Hirlap said on Friday, citing unnamed sources. Unfilled jobs will be scrapped, and a scaledown affecting several thousand workplaces is planned at local governments and state-run institutions operated by ministries.
The govenrment also plans to freeze wage costs until 2015 as part of the move.
According to calculations, the dismissal of ten thousand public servants could save some 40-45 billion forints (EUR 114-128mn) annually, Magyar Hirlap said.
Hungary has about 650,000-670,000 public sector staff outside of people employed in the public works program.
The government plans to cut Hungary’s public sector workforce to about 400,000 in the medium term, the paper said citing an unnamed government source.
Analysts see a HUF 600 billion gaping hole in the government’s 2013 draft budget.