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Budapest City Council approves 2012 budget


The Budapest City Council has approved the municipality's budget for 2012 as well as the financing outlook for the period between 2012 and 2015.


Deputies approved the proposal by a vote of 18 in favor and 14 against.

The city's revenues are targeted at HUF 299.514 billion and its expenditures at HUF 386.169 billion. The difference will be covered from residual funds from earlier years, and a development loan to be drawn down based on general agreements signed in earlier years.

Operating expenditures are targeted at HUF 203.614 billion, of which HUF 11.15 billion will be set aside as general reserves for restructuring related expenditures, risk management and the management of the "heritage of the previous city management". A further HUF 1 billion will be set aside for each of risk reserves of EU financing and litigations.

In order to maintain the operation of city's public transport company BKV, some operating expenditures will be retained, they will review institutions and responsibilities on an individual basis. Decision on maintaining the freeze of funds or definitively withdrawing the expenditure targets will be taken in April at the earliest, depending on the settlement of BKV's financing problems.