A new agreement between Budapest and the Hungarian government could reshape how public transport and parking are organised in the capital from 2027.

The deal was reached at the first meeting of the re-established Budapest Development Council and includes changes to the capital’s finances, public transport system and parking management, as well as several major development projects.

One of the most significant elements is the planned transformation of the Budapest Transport Centre into a regional transport authority covering both Budapest and its wider metropolitan area. According to the capital, the state and Budapest would jointly finance public transport on a 50-50 basis.

One transport system for Budapest and its suburbs

Under the plans, the new organisation would operate as the Budapest Metropolitan Transport Centre and would be responsible for coordinating timetables, integrating fares and ordering transport services.

The aim is to reduce the long-standing separation between transport within Budapest and services connecting the capital with its suburbs. This could include closer coordination between BKK, MÁV and regional bus services.

According to 24.hu, Transport and Investment Minister Dávid Vitézy said the state and Budapest could each contribute around HUF 170 billion to the system in 2027.

He also said the changes could eventually allow electronic ticketing and bank card-based travel to be expanded across the entire Budapest metropolitan region. For passengers, the goal would be a more integrated network in which journeys crossing Budapest’s administrative boundary are easier to plan and use.

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Major changes could also be coming to parking

Under the current plans, responsibility for operating paid parking and collecting parking fees would move from the district municipalities to the Budapest municipality. Revenue would be reserved for running the parking system and maintaining and developing the capital’s road network.

Vitézy argued that the current fragmented model is highly inefficient. According to figures he cited, operating costs in some districts can consume between 60 and 97.5 percent of parking revenues, while some systems even operate at a loss.

Further technological changes are also being considered. Vitézy said traditional parking machines and the familiar paper penalties placed on windscreens could eventually be phased out, although the necessary legal changes would still have to be adopted.

The proposal has already sparked debate among district leaders, as transferring parking revenues to the capital would significantly change the way local authorities finance parts of their operations.

HUF 120 billion package for Budapest

The government will provide the capital with a one-off HUF 120 billion payment, while Budapest will withdraw lawsuits related to the solidarity contribution. The money can be used to settle outstanding taxes, contributions and other obligations.

According to Vitézy, around HUF 91 billion of the amount will be used to settle existing liabilities to the state, leaving roughly HUF 30 billion to support Budapest’s operations through the end of 2026.

The capital has also committed to at least HUF 20 billion in operating savings next year, while the solidarity contribution paid by Budapest is expected to be reduced from 2027.

Rákosrendező and other major projects also included

The government and Budapest also agreed to cooperate on the redevelopment of a large former railway area in northern Budapest, Rákosrendező, while further discussions will cover the Diákváros student district, the renovation of Budapest’s historic thermal baths and other major urban development projects.

Many details still need to be worked out, and several of the planned reforms will require further legal and organisational changes.

If implemented, however, the agreement could significantly alter how people travel, park and move between Budapest and its surrounding suburbs from 2027.

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