Unexpexted court ruling: Budapest loses EUR 10 millions, public transport may collapse
The court has overturned Budapest’s temporary legal protection on appeal, clearing the way for the Hungarian State Treasury to seize the city’s accounts at any time.
Ambrus Kiss, Director General of the Budapest Mayor’s Office, told Népszava in an interview that according to a decision received Monday, the court in Pécs annulled the temporary legal protection granted by the Budapest Metropolitan Court last December. This means the Hungarian State Treasury can now retroactively collect a 4.5 billion forint installment of the solidarity contribution directly from the capital’s bank accounts.
Budapest in critical financial straits
Kiss added that the city’s current bank balance stands at negative 65 billion forints when factoring in due and upcoming deductions. However, starting September 10, corporate tax payments are expected, which may improve the balance. He also noted that the city’s overdraft facility—currently at 80 billion forints—expires on September 19, so these revenues alone will not be enough to stabilize the city’s finances.
“If we don’t secure legal protection for the fall months, or if previously granted protections are overturned on appeal and we have to settle payments, then the city’s debt could reach a critical level before year-end,” the director general warned.
He emphasized that resolving the financial crisis will require an agreement with the government.
Minister Márton Nagy: Budapest was stalling
After the ruling, Minister for National Economy Márton Nagy responded via his Facebook page, stating that “it’s now clear that Mayor Gergely Karácsony and the city’s leadership were merely engaging in political posturing and stalling for time.”
The minister confirmed that the Treasury received the final, binding ruling Monday and stressed that settling this obligation serves the public interest. He pointed out that a legal injury must be real—not hypothetical—to qualify for protection. “We made it clear: no one is above the law. Everyone must pay their share of the solidarity contribution,” he added.
Ongoing dispute between city and the government
Budapest’s leadership has long contested the solidarity contribution, launching multiple lawsuits over the years. City officials argue the fee no longer functions as originally intended—to support disadvantaged municipalities—and instead goes straight into the national budget. City leaders claim the system is unfair, as a few municipalities shoulder the bulk of the burden.
- 162.4 billion forints: the total amount Budapest and its districts are required to pay in 2025 as a solidarity contribution.
- Approximately 89.1 billion forints of that falls directly on the Budapest Municipality.
- The city has long argued that it pays more into state coffers than it receives back in operational support.
Budapest has voluntarily withheld payment. In May, the Hungarian State Treasury seized 10.2 billion forints, which was later returned following a court order.
In response to the financial pressure, the mayor enacted emergency measures, such as authorizing only net salary payments and briefly halting public transportation for 10 minutes to signal the crisis to the government. The government has promised to consider a resolution, but not before conducting a financial audit of the city. Direct negotiations have yet to begin.
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Budapest is raking in money hand over fist, yet, it is practically bankrupt. How is that possible, one may ask? Simple: Its mayor and City Hall are a bunch of socialists.
Socialists are world-infamous for mismanaging public finances, especially by frittering away tax dollars on unproductive, unprofitable causes. Take mass transit for example: Everyone except people with jobs gets to ride it for “free,” the whole thing is hemorrhaging money, but the city is spending hundreds of millions on new buses, streetcars, subway stations, etc. And don’t get me started (again) on the bicycle track nonsense!
Anyway, I thought socialists are all about solidarity. Seems not, though, when THEY are the ones whose pockets get picked. Too bad. Cough up, Greg!
Who stepped on your tail and made you say this nonsense.
Keep your mouth shut better than we hear you stupidity on all articles!
I lived in two of the US most beautiful and richest cities that went to hell with poor city governments. It all seem to happen in just 15 years. In Budapest the demonstration are about what has gone wrong. We now know many are organized by Soros and his NGOs- many protest organizers are being paid- 75-80 thousand dollars. Of course that couldn’t happen here- soros -CEU and his child left long time ago. Many of the DAs he funded are being found out , but nit before danage has been done
Would you mind sharing the source of all this information (“…organized by Soros…paid- 75-80 thousand dollars…DAs he funded…” etc.)?
Wild stuff – we should know where all this information comes from, right? You couldn´t have made these things up, could you?
Same happened in Boston, one of the most beautiful cities in the US, went to the dogs. Mismanagement, need new at the helm. It is Karacsony that brought it upon Budapest.
Michael Steiner, the “oiled palm” under a “pseudonym” being of FULL Membership of the Fidesz Party – he or her, years as a contributor, a commentator has used DNH as a “platform” to sing the praises of his/her BELOVED demigod – Victor Mihaly. Orban, that under the “pseudonym” absolutely FEARS truth not accepting that Truth is Truth – this commentary will “Make” you, your FRIENDS of Fidesz Membership further HUMILIATED of the facts contributed to DNH it contains, that are humongous in the CORE – in the “toxic” culture conduct – Heinous in fact – of the Orban led Fidesz Government, the Government of Hungary.
National Socialism commenced started in 1918 in Germany.
The History of Germany, through the doctrine and practice of the Nazis, involving the Supremacy of Hitler, as Fuher – anti-Semitism and the State Control of the Economy and the country’s National expansion can under this “Doctrine” of Practice.
Facism, is a far right ,authoritarian, ultranationalists Political Ideology and “movement’ characterised by a Dictatorial leader, centralized autocracy, militarism, forcible suppression of opposition that believe and conduct them-selves in a natural hierarchy, subordination of individual interests for perceived good of there country or race and a strong and forceful representation of society and the economy.
It opposes – anarchism, DEMOCRACY, pluralism, liberalism, socialism and Marxism.
Facism, can rightly be placed, on the far right of wing within the traditional left-wing spectrum of Politics.
Spring of 2026 – in his DOWNFALL, his “Judas” dismissal of DEMOCRACY, imposed on millions of Hungarians, on Hungary, this contribution another that is in the CHARACTER – the DNA of Victor Mihaly. Orban – the DESTRUCTOR of Hungary.