Budapest Assembly adopts measures of survival programme

The municipal assembly of Budapest at its meeting on Wednesday adopted a “survival programme”, a package of measures aimed at reining in the city’s finances.

The package includes the stabilisation of the city’s budget, maintaining the quality of city services and guaranteeing the payment of wages of people employed by institutions operated by the municipality.

Under the package approved with 18 votes in favour and 12 abstentions, the city will take out a HUF 16.6 billion (EUR 44.2m) loan for development projects scheduled for 2023. The loan will match support provided in EU funding, central budget allocations and loans granted by the European Investment Bank, according to the draft submitted for a vote.

Under the measures, the mayor of Budapest will turn to the central government for the payment of pledged compensation for increased utility costs. Budapest is the only city that “has been left out of state subsidies allocated in a first round in compensation for energy price increases to local governments of cities with more than 10,000 residents,” the draft said.

Gergely Karácsony will also submit a proposal for the city to receive one-third of the costs of operating the city’s public transport services from the 2024 central budget.