The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This Selected Issues paper assesses the efficiency of public spending on health and education in Hungary, with a view to identifying potential efficiency gains and areas for reforms so as to lock in such gains. The paper finds potentially large room for efficiency gains over the medium term, particularly in the health sector. A frontier analysis using data envelopment methodology, suggests that savings from efficiency gains in the health and education sectors could amount up to about 3 percentage points of GDP over the medium term, of which 90 percent could be achieved from efficiency gains in the health sector.