Will the survival of the Budapest ticket and pass bring bankruptcy to the capital?

János Lázár, Hungary’s Minister of Construction and Transport, has presented a new proposal for the fate of the Budapest ticket and Budapest pass. The question now lingers: will Mayor Gergely Karácsony accept it?

A great 2000s innovation at risk?

The integrated Budapest ticket and pass system, a great innovation of the 2000s, streamlined public transport in Budapest, enabling commuters to utilise various modes with a single ticket or pass. However, this system’s existence may be in jeopardy come 1 March due to an ongoing financial dispute between the government and Budapest.

The crux of the matter lies in the government’s annual payment of HUF 12 billion to Budapest for maintaining its complex public transport network. In return, Budapest pays HUF 6.9 billion to the government for services rendered by the state-owned MÁV (Hungarian Railways) and Volánbusz (Hungary’s state bus company) within the capital. The government has declared its intention to discontinue the HUF 12 billion support, instead seeking HUF 8.6 billion for MÁV and Volánbusz services within the city, citing inflation as the reason. The significance of MÁV and Volánbusz services in Budapest is evident, such as when travelling from Budapest Nyugati Railway Station to Ferihegy Airport Station using a single Budapest ticket or pass.

However, the capital has rejected this proposal. While BKK, Budapest’s transport company, signed some interim contracts with MÁV and Volánbusz in December, it offers only a temporary solution until 1 March. You may read our detailed article in the issue HERE.

The government’s new offer might result in Budapest’s bankruptcy

In Debrecen today, Mr Lázár extended another offer to Mayor Gergely Karácsony, the opposition mayor of Budapest. He suggested that MÁV and Volánbusz would continue to accept Budapest passes and tickets within the administrative borders of Budapest, thereby preserving the current system. However, this comes at a cost.

In return, Budapest must accept county and country passes within the city. This implies that residents in suburbs like Érd, Üllő or Dunakeszi could purchase a single ticket for travel to and within Budapest – the Pest County Ticket or Pass. Consequently, they could save HUF 9,450 (EUR 25) each month, no longer needing to purchase a Budapest pass. The same applies to individual tickets.

Yet, such an agreement would create a deficit in Budapest’s budget, as the capital would lose substantial revenue when suburban residents opt for the Pest County Pass. The capital will not be able to reduce its service without public outcry. While compensating Budapest and BKK for this added burden with government funding could be a solution, it necessitates negotiations, agreements and potential disputes in the future.

The situation is further complicated by upcoming municipal elections in Hungary on 9 June. Given the impact of public transport decisions on the populace, the lack of resolution on this issue could jeopardise the current opposition leadership in Budapest.

Read also:

• Extraordinary announcement today: Hungary’s public transport changes, new tickets introduced – Read more HERE
• Another improvement for buses in Hungary will help many – Details in THIS article