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Budapest council approves distribution of central funds

The Budapest municipality decided on the distribution of central funds among the city council and district councils on Saturday.

The council approved central funding of HUF 96.4bn for the city and HUF 92.6 billion for the 23 districts combined. The city will have to turn HUF 7.6 billion of its budget towards operating the public transport system. Fidesz-Christian Democrat councillors voted in favour of the fund division while the opposition Socialists voted against it, and radical nationalist Jobbik and small opposition LMP abstained.
Parliament has passed a law changing the proportions in which local tax revenues are redistributed to the city and the districts. Under the change, the city gets 51% of the funds, up from the earlier 47 percent, and districts share 49%.
Csaba Horváth, head of the Socialist group in the council, said the decision was tantamount to funding cuts approved by the Fidesz majority in parliament. He said since [Fidesz came into power in] 2010, the city had lost over HUF 30 billion in connection with funds-sharing decisions.
Gábor Bagdy, deputy mayor and a councillor for Fidesz-Christian Democrats, said today's decision would improve the city's financial position. He added that the reason why the city is in such dire straits is the legacy of earlier administrations.