Layoffs in public sector not on govt agenda, says ministry

Budapest, September 14 (MTI) - Plans for layoffs in the public sector have not been on the government s agenda, the public administration and justice ministry told MTI in reaction to a press report on Friday.

The economy ministry also denied planned layoffs, saying in a statement that next year s deficit target of 2.2 percent of GDP, as approved by parliament, would not necessitate dismissals in the public sector.

Under Hungary s updated Szell Kalman Plan wages in the public sector will stay level until 2015, but salaries for teachers and health-care staff will be raised, the ministry added.

Magyar Hirlap daily said that further layoffs were expected in order to meet the deficit target in 2013. Citing unnamed sources, the paper said that vacant positions would be scrapped, and streamlining affecting several thousand workplaces was planned at local governments and state-run institutions operated by ministries.

According to calculations, the dismissal of ten thousand public servants could save some 40-45 billion forints (EUR 114-128mn) annually, the paper added.

Early this year, 5 percent of central administration staff were laid off as part of the government s efforts to downsize bureaucracy.