Paper/Speech Details of Conference Program for the 27th NISPAcee Annual Conference Program Overview WG5: Public Finance and Public Financial Management Author(s) Peter Novoszath Ludovika University of Public Service Budapest Hungary Title The Regulation and Role of State Subsidies in Domestic Automotive Investments in Hungary File Paper files are available only for conference participants, please login first. Presenter Peter Novoszath Abstract In this paper, I introduce the regulation of state aid and I evaluate the Hungarian National Investment Incentive Framework system based on various aspects. The Hungarian support system is most effective in stimulating new investments. From a cost-benefit point of view, the scheme was most beneficial in terms of reducing unemployment-related expenditure. However, the present support system does not support the strengthening of domestic companies and their becoming a supplier but rather supports the settlement of foreign suppliers of large companies to Hungary. An additional serious deficiency of state subsidies in Hungary was before 2017 primarily to support the capacity-building, job-creating investments of large companies, while R & D and technology-intensive investments and helped micro-small, small and medium-sized enterprises to a limited extent. Keywords: government subsidies, job creation, promotion of R & D activities, regulation of state aids, stimulation of investment
