Anomalies in Higher Education Financing in Hungary

Abstract

The study examines some recent developments in Hungarian higher education funding with some historical and international outlook. Its purpose is to present the causes of the anomalies that we are experiencing today (such anomalies include, for example, new institutional indebtedness and their central support, as well as instructor layoffs at some universities, and a sudden increase in tuition fees). The anomalies are surprising because, according to the government, the introduction of the Chancellor’s system was successful in consolidating higher education.
The paper states that the last ten years of Hungarian higher education were characterized by the transformation of the financing system, in addition to the reduction of state resources. In international comparison, the government support for domestic higher education compared to GDP is significantly below the average of developed countries. The government tried to deal with institutional management difficulties and indebtedness with the introduction of the Chancellor’s system. (which drastically reduced autonomy), and by providing ad hoc, hand-guided cash grants. However, the financial condition of the institutions is permanently bad, which is obviously at the expense of quality, as the institutions are forced to dismiss older and more experienced trainers, and the conditions of education also deteriorate. Without widening public resources and widening economic freedom, the situation will continue to deteriorate. It is becoming increasingly evident that the idea of a government strategy to make Hungarian higher education institutions world-class is unrealistic.