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As a result of the tax cuts, which will deny the central budget a Ft 300 billion state income, the total budget secured for municipalities will drop from the current Ft 1,349 billion to Ft 1,255 billion in 2006, explained secretary of state Gábor Juhász. The budget restrictions will shrink not only the allocations to the public administration but also those to municipalities. The towns and cities will have to make an effort to operate more efficiently and more cost-effectively in this situation, Juhász added. (NV 3, MH 5) E.C.