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Gov't reviewing support for BKV

The National Economy Ministry is reviewing the maximum amount of state support that can be paid from the budget to the Budapest Public Transport Company (BKV), but the government will not leave the company in the lurch, government spokesperson Anna Nagy said on Monday, answering a question.

Nagy confirmed that the ministry had received a letter from the mayor of Budapest about extra support for BKV approved by the previous government.

Daily Népszava reported on Monday that the new government had not transferred a HUF 7.5 billion installment of the extra support. Mayor Gábor Demszky said in the letter that BKV could not continue operating without the money, the paper said.

BKV gets more than HUF 30 billion in standard state subsidies a year, and about HUF 17 billion in extra subsidies are paid to the company as compensation for price discounts, Nagy said. The previous government transferred HUF 10 billion of the HUF 17 billion in extra support to BKV, she added.

Hungary's new government has supported BKV and will not leave it in the lurch, Nagy said. However, the ministry will decide on the third installment of the extra support based on fiscal limitations, she added. (MTI-ECONEWS)