The changes primarily affect the 1+1 scheme, which encourages machinery purchases by businesses through state co-financing.
Background: the mills grind slowly
Interest in the 1+1 grant opportunity was exceptionally high: by the end of the submission period in late January, a large number of SMEs had submitted applications. The program originally launched with a budget of HUF 48 billion, but due to oversubscription, this amount was nearly tripled to HUF 130 billion. However, during this time, the evaluation of applications proceeded rather slowly, with regional phasing and long waiting times.
New directive: acceleration is needed
The government recognized that snail-paced administration not only hinders the effectiveness of economic stimulation but can also become politically counterproductive. Therefore, the Ministry of National Economy has now set a clear goal to speed up the evaluation process: the Hungarian Economic Development Agency (MGFÜ) has been instructed to complete the evaluation of all 1+1 applications within one month.
Human resources under pressure
Given the volume of the task, it is highly questionable whether the agency can meet this deadline with its current resources. Restrictive measures have been introduced within the MGFÜ: employee vacations have been suspended, and new staff are being recruited to handle the increased administrative demands. Although no official communication has been issued in this regard, the step underlines the seriousness of the intent.
What to expect?
The aim of the accelerated procedure is to ensure that the supported machinery purchases are realized as soon as possible. Since the delivery and commissioning of industrial equipment typically take several months, closing the payments during the summer may allow the new equipment to be operational by the end of the year.
A message to the market
The adjustment of the program sends a clear message: economic leadership is able and willing to respond flexibly to the expectations of the business sector if the original schedule fails to meet its goals. If successfully implemented, the new strategy could not only speed up investments but also strengthen trust in the SME sector.
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