BKV to get more than HUF 32bn from central budget in 2012

Music

The Budapest Public Transport Company (BKV) will get HUF 32.2bn from the central government next year under a last-minute change to the 2012 budget bill approved Monday night.

MPs approved a reduction in funding for local council public transport from HUF 35.2bn to HUF 3.0bn. At the same time, Budapest was made inelligible for the funding, but got its own allocation of HUF 32.2bn.

Some conditions are attached to the funding: the Budapest local council must draw up a plan to ensure the long-term sustainability of public transport and the losses generated by public transport may not exceed the total amount of the funding.

Budapest mayor Istvan Tarlos said at a press conference on Tuesday that the HUF 32bn was not enough to finance BKV and warned that company’s services could be forced to halt around February 2 if Parliament’s decision remained unchanged. He explained that the HUF 35bn was, until now, part of subsidies paid on the basis of passenger numbers. The amount is now reduced by HUF 3bn and it was frozen until the end of March, he added.

Mr Tarlos noted that a shutdown by BKV would cost the national economy about HUF 14bn a day.

ADVERTISEMENT

Purchasing Managers' Index rises Analysis

Purchasing Managers' Index rises

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

New Jewish cultural hub opens in Budapest City

New Jewish cultural hub opens in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

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.