Public transport funding bill to squeeze Budapest’s budget


About a month after losing Budapest to the opposition, the government submitted a proposal related to public transport funding, which would considerably reduce Mayor Gergely Karácsonyʼs powers over the capitalʼs budget, according to multiple reports. says that the bill would force Budapest to spend the USD 500 million a year it collects in business tax receipts on the public transport system.

"We will lay down in a law that the local trade tax must be used primarily for financing local public transport,” Minister of State for Public Administration of the Prime Minister’s Office Bence Tuzson said, according to a report by He added that the capital would only be permitted to use any part of these tax revenues after public transport spending has been guaranteed.

“If [former Mayor of Budapest] István Tarlós was able to finance the capital’s public transport, Gergely Karácsony, too, should be able to do so,” he said.  

However, news site says that Budapest received some HUF 12 billion from the government as public transport funding support in 2018. Additionally, BKK (Center for Budapest Transport) was given HUF 15 bln as direct compensation for money lost after concessionary fares. The municipality provided some HUF 73.9 bln of funding out of its own pockets during Tarlósʼs last full year. 

Karácsony called on the government to withdraw the bill. He also said that Orbán should not backtrack on pledges to work in partnership with local councils, even where the governing party was defeated.

According to Bloomberg, Deputy Mayor Ambrus Kiss said the legislation could put the city in a tight spot. “This could open the door for the government to financially squeeze Budapest,” Kiss said, adding that the city now spends half of its business-tax income on buses, trams and the metro. “But at this point we’re just trying to understand what the government’s purpose is."


MOL Group Ships Azeri Crude to Bratislava Refinery Energy Trade

MOL Group Ships Azeri Crude to Bratislava Refinery

Parliament Negates Mandatory Membership in MOK Parliament

Parliament Negates Mandatory Membership in MOK

Smartphone Transactions Jumped Last Year Telco

Smartphone Transactions Jumped Last Year

Service Restarted on Full Length of Metro Line M3 City

Service Restarted on Full Length of Metro Line M3


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.