Budapest to spend ‘necessary amount’ of a rising revenue share on public transport

Parliament

The Budapest municipalityʼs shares in revenue will increase at the expense of the capitalʼs 23 districts but it will have to spend “the necessary amount” rather than a specified ratio of its dues to provide public transport services under an amendment submitted by the government to Parliament yesterday, Hungarian news agency MTI reported.

The proposal is in the same bill as a proposed cut of the VAT on home construction, which is expected to be voted on today after Prime Minister Orbán Viktor requested an urgent parliamentary discussion.

At present, the Budapest municipality receives 51% of the revenues it must share with the Budapest districts, and it must spend 4% of these revenues on public transport.

From 2016 on, the central municipality would have to spend the “amount necessary” for the provision of public transport from its due while its share would rise to 52.5% in 2016 and to 54% from 2017. At the same time, districtsʼ combined share would drop first to 47.5% and then to 46%.

Budapestʼs public transport is under-financed, and Budapest mayor István Tarlós said last week he would meet Orbán to consult on the long-term financing of Budapest Transport Company (BKV). Reacting to comments from János Lázár, the head of the Prime Ministerʼs Office, Tarlós said in early December that there was little chance of the state taking over BKV, but the city was ready to part with its “only unsolvable problem”.

ADVERTISEMENT

Equilor analysts forecast 4.5% GDP growth for 2022 Analysis

Equilor analysts forecast 4.5% GDP growth for 2022

Márki-Zay tests positive for COVID-19 Elections

Márki-Zay tests positive for COVID-19

New leasing and sales director at Horizon Development Appointments

New leasing and sales director at Horizon Development

Gov't calls for technical screening of László Papp Arena City

Gov't calls for technical screening of László Papp Arena

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.