Planning difficulties of hungarian municipally owned companies

Abstract

Abstract. In this study, we present the planning difficulties of municipally owned companies in Hungary. Current legislation does not clearly define how these companies should perform their planning. In Hungary, municipally owned companies typically use public property during their operations, so transparent, well-founded and efficient planning is essential. An average of 1,900 such companies have been operating in recent years, but their number has been declining slowly over the years. The main difficulties in planning are the lack of managerial accounting and sufficient and adequate human resources. In addition, it causes difficulties for companies that there is no integrated directive, guidelines on the basis of which they would design, or they are highly dependent on the owner, as it finances their operations. The COVID-19 pandemic also had an impact on companies’ planning for 2021.