Hungary

Last update: July, 2016

In 2009, the population of Hungary was 10 030 975. Total public cultural expenditure was 150 917 million HUF, about 0.57% of the country's GDP. According to Eurostat, in 2014, among EU countries, Hungary and Estonia registered the largest ratio to GDP of government expenditure in the 'recreation, culture and religion' function, both 2.0 % of GDP.

Public cultural expenditure per capita was 15 045 HUF, about 56 EUR. The share of cultural expenditure of the total public expenditure in 2009 was 1.69%.

No further detailed information is available on expenditure after 2009. Access to financial data has become even more difficult than before; in 2013 the website of the state secretariat for culture is limited to news, announcements and to the presentation of the structure and main responsibilities.

Table 4:    Public cultural expenditure by level of government in billion HUF, 2010-2014

Source: Eurostat COFOG (Other = Recreation, culture and religion n.e.c.).

Public cultural expenditure decreased both centrally and at local level in the years after the crisis. On the other hand the government has been spending significantly more on communication (especially on public television), as well as on subsidising churches.

In 2015 the major part of the state cultural contribution went to the music scene. For programme organisation the Liszt Ferenc Music Academy received 800 million HUF state support; the World Music Expo – WOMEX was supported by 387 million HUF; Europa Cantat choir festival received 110 million HUF. The state support for the Hungarian State Opera House has never been as high as it was in 2015: in one single year it was increased by 1.8 billion HUF. The support of Budapest Operetta-theatre has been a priority as well. Two important institutions from the heritage field, the Hungarian National Museum and the Hungarian Heritage House have been supported by 100 million and 150 million respectively.

Last update: July, 2016

The years after the millennium showed a continued marked trend of decentralisation. The cultural spending of local governments grew by about 78% between 2002 and 2007, when the cumulated inflation was less than 30%. For example, cities spent over 95% more on museums than five years earlier; over 50% more on libraries, local television, music and other arts respectively. This trend took a sharp turn after 2010 and by 2012 the central government became a stronger single public funder than the regional and local sources cumulatively. A part of the explanation is the restructuring in the museum sector, whereby the state took charge of a number of institutions. 

Table 5:    Public cultural expenditure: by level of government, in HUF, in EUR, in %, 2014

Source: Eurostat COFOG (cultural services)

Maintaining central cultural institutions (including cultural institutes abroad as well as the administration of the ministry) takes up a considerable share of the state expenditure. Individual cultural projects were mainly subsidised from the National Cultural Fund. In 2012, the total amount allocated by the Fund was 10.3 billion HUF. Since 2010 the main source of the budget of the Fund is the National Lottery.

Last update: July, 2016

Since a considerable part of the data on public expenditure are presented in aggregations that do not reveal division by sub-sector (e.g. performing arts, visual arts etc.), actual information for sector breakdown is not currently available.

Table 6:     State cultural expenditure by sector, by level of government, in HUF, in 2009

Source: Hungarian State Treasury.

The major part of socio-cultural activities is constituted by the operations of the community cultural centre whose functions include various forms of informal and adult education. Since the Treasury combines all forms of out-of-school education, one fourth of it was included in the socio-cultural category, which is the largest item even without this addition.

Last update: July, 2016

As indirect support to creative workers, 1% of the total value of investment in public infrastructure in a year must be spent on purchasing contemporary artworks (with the possibility of spreading the expense of the purchase over five consecutive years) astax relief (as of 2006) based on Act LXXXVI/1991.

The heritage sphere benefits from motorway building processes as, before the land work starts, archaeologists must explore the area at the expense of the entrepreneur.

Last update: July, 2016

In addition to support granted by art institutions or project funding obtained via competition, the main channels of support for artists is via the Public Interest Limited Company for Hungarian Creative Art (Magyar Alkotóművészeti Közhasznú Nonprofit Kft) which in 2011 inherited the property and part of the social and artistic functions of the Hungarian Public Foundation for Creative Art. The company offers artists residencies, studios, exhibition facilities etc.

The Hungarian Soros Foundation used to be the most significant of all private foundations supporting culture. However, 2003 was the last year when the Foundation funded cultural activities in Hungary.

Several local governments have set up foundations for supporting local artistic activities and artists living in their area. The number of foundations established by the heirs of artists for supporting young talent is also significant.

Last update: July, 2016

The basic structure of Hungarian state cultural awards dates back to the previous regime; in addition to the existing list, each minister adds at least one new award. There are over forty different kinds of awards, most of them bearing the name of a renowned Hungarian artist: e.g. the Liszt Award is given to 8 musicians each year. These awards of the ministry go to nearly 250 persons, or in some cases groups and institutions each year.

Nearly as many state awards are also given to personalities in the cultural life of the country, from the Knight's Cross to the Kossuth Prize. The latter is given to around 20 people each year, with a financial bonus that is equivalent to half a months' average income (as stipulated by the law).

Five artists are awarded the title of Excellent Artist each year, and ten become Worthy Artists, rewarded with half and one third of the amount of the Kossuth Prize (all these awards are tax free).

The top distinction is the Corvin Chain, to be held by twelve persons at any one time, about half of whom are usually from culture. This award was originally founded by Admiral Horthy in 1930, renewed by the first Orbán-government (1998-2002), and again in 2012.

Twelve people can enjoy the benefits of the title the Actor (or Actress, the Hungarian language does not use gender) of the Nation at one time. Upon this model, the amended Film Law introduced the title Film Artist of the Nation that is given upon the decision of the government to selected artists who had formerly received the Kossuth Prize. Only 15 artists over the age of 65 can have this title at any one time. It is at the discretion of the government to decide which of those artists that used to receive an annual allowance as holders of the title called Master of Hungarian Moving Pictures established by the Motion Picture Public Foundation, will be entitled to the new award. 

These schemes have been crowned by the regimes operated by MMA, presented in chapter 2.1: the allowances that the members of the Academy and the Artists of the Nation receive.

The system of 1-3 year grants has been developing and expanding since the late 1950s, administered at present by the Public Interest Limited Company for Hungarian Creative Art, mentioned in the previous chapter. Scholarships are available for 4 to 10 people, under 35 years, in each of the following fields: fine arts, photography, design, applied arts, art criticism, literature, play writing, composition, musicology, music criticism and musicianship.

Since 2004, 18 young Hungarian writers living in neighbouring countries receive grants each year in four literary categories. In addition to the scholarships of the Ministry, several local governments grant scholarships to artists living in their village / town. There are also scholarships available to artists from the Hungarian Academy in Rome.

Artists and cultural operators can also apply for scholarships and grants in the general schemes operated by the Hungarian Scholarship Board Office (Magyar Ösztöndíj Bizottság). Senior experts, artists and researchers may seek opportunities to study and work in various countries all over the world through the Hungarian National Eötvös Scholarship (Magyar Állami Eötvös Ösztöndíj). Both of these are administered by the Balassi Institute.

As a surprise move, early in 2016 the government established a nonprofit company with 150 million HUF (about half a million euro) for talent nurturing in the Carpathian Basis. The main axis, and the first projects are focusing on young writers.

Last update: July, 2016

During the well researched period of 2004-2007, 13.5% of the annual grant distributed by the National Civic Fund went to organisations working in the field of culture, although their average amount was below the average.

Fundamental changes took place in the administration of non-profit organisations by the so-called Act on Civil Society (CLXXV/2011) on the rights of association, on non-profit status as well as the operation and support of civil society organisations replacing the Non-Profit Act (CLVI/1997), the National Civil Fund Act (L/2003) and the Act on the Rights of Association (II/1989) among others. 

The new law introduces the notion of civil organisation (association, federation and foundation) and reduced the former two-tier classification of outstanding and simple public benefit organisations into one, the Public Benefit Organisation. The new administrative rules prescribe double entry book keeping, introduces bankruptcy, liquidation and winding-up processes, and established the National Cooperation Fund (NEA) which replaces the National Civil Fund in its role of distributing financial support to civic organisations. As it was pointed out in chapter 4.1.4, about 20% of the subsidy received from the 1% of citizens' income tax benefits cultural organisations.