From the 2026 budget audit
915 million Ft to commercial companies the ministry owns — companies that cannot cover their costs.
State enterprises under Ministry of Foreign Affairs ownership receive annual budget transfers to cover costs their own revenues do not meet — the pattern that shields enterprises from the discipline every private firm faces.
Roughly 229 Ft per taxpayer per year — 915 million Ft to state-owned companies that would need to restructure, reprice, or be sold if they were not insulated by this annual transfer.
What you see — and what you don't
The seen: the state-owned companies that continue operating on their current terms, with the budget filling the gap between revenues and costs. The unseen: the private competitor that covers its costs from what customers voluntarily pay — and whose tax contributes to the transfer that subsidises the rival it cannot undercut.
Objection
"State enterprises serve functions the market won't provide — without the transfer they close and the function is lost."
Answer
If the transfer is removed and the company cannot cover its costs, the question is whether to restructure it, sell it, or close it — not whether to continue the subsidy indefinitely. Each of those options is available through ordinary commercial and legal channels. The broader privatisation track addresses the ownership question; the transfer line closing is what forces it onto the agenda.
Share if you think state-owned companies should cover their costs or be restructured, not propped up by annual budget transfers.
The analyst's verdict
Resource Allocations to Other State Enterprises under Ministry Ownership
Rationale
This line transfers operating and capital resources to commercial companies the ministry owns. A state enterprise that requires an annual resource transfer from the budget to function is, by that fact, not covering its costs from what its customers voluntarily pay — the soft-budget-constraint pattern again. The transfer crowds out productive capital and shields the enterprise from the discipline that would otherwise force it to reprice, restructure, or be sold. The amount is small, but the principle scales: a budget transfer to a state-owned commercial company is a candidate for elimination, with the underlying ownership question — whether the state should hold these companies at all — referred to the broader privatisation track. Closing the transfer line forces the question.
Transition mechanism
Eliminate the budget transfer in the 2026 cycle. The companies must cover costs from revenue or be restructured or divested; this is the same discipline a private firm faces.
Affected groups
The state enterprises receiving the transfer and their employees; the resolution depends on each company's underlying commercial viability.
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