Budapest’s popular 100E airport shuttle bus will cease operation?

The opposition leadership of Hungary’s capital, Budapest, and the Hungarian government have been quarrelling since 2019. Now it seems their conflict might reach another milestone. If Budapest decides not to pay its taxes, the government may terminate to transfer its allocations for the capital. And that may result in the collapse of Budapest’s public transport system, including even the 100E airport shuttle line.

Budapest’s public transport system is unique since it gains its revenues from at least three sources. The first one is obvious, the income after the ticket and pass sales. Meanwhile, the second and third ones are the contributions of the Hungarian government and the city council. The former has been problematic.

Budapest citizens chose an opposition leader in the local government elections in 2019. Even though PM Viktor Orbán highlighted the importance of cooperation, conflicts began to develop quickly. One is the traffic system of Hungary’s symbolic and renewed Chain Bridge. Karácsony would like to preserve it for the taxis, buses, and pedestrians, while the government insists on letting cars back on the overpass.

The latest dispute is about Budapest’s contribution to the state budget. The name of the tax is ‘solidarity contribution’ and the leadership of the city wants to withhold it because they believe it is too high. Budapest began a court trial against the Hungarian state treasury concerning the issue and does not want to pay the tax until it is finished. The answer of the government is to halt state budget payments Budapest receives, telex.hu wrote.

Ambrus Kiss, Budapest’s deputy mayor, said that provided the government ceases to transfer financial supply, Budapest would no longer finance the operation of MÁV, the Hungarian State Railways and Volánbusz, the country’s main bus service provider. Mr Kiss added that the contribution of Budapest for the two companies is worth HUF 548 million (EUR 1.469 million) per month. That money is spent on the public transport service between the suburbs and the city, including, for example, the 100E airport shuttle bus. Budapest Airport is not in Budapest but between Vecsés and Üllő, two suburbs, small cities close to the capital.

In return, the state budget pays approximately HUF 1 billion (EUR 2.68 million) each month to support Budapest’s public transport system. Answering a question whether that could result in ceasing Budapest’s public transport, Kiss said they prepared for that scenario in the city’s budget. Therefore, they will pay all salaries and operate the buses, trams, and the underground system.

According to a bill submitted by Fidesz, Orbán’s party, a local government indebted to the Hungarian state treasury could not get money from the treasury until the extent of its debt. There would only be two exceptions: vis maior and extraordinary allocations.

Budapest’s standpoint is that the government’s solidarity contribution calculated for Budapest is HUF 25 billion higher than the law allows. Therefore, they started a court trial and did not want to pay the tax until the process ends. Meanwhile, the municipal council raised Budapest’s credit line this week from HUF 25 billion to HUF 40 billion (EUR 107.2 million). They said the measure was a precaution, a safety net provided the government does not pay. Mr Kiss said the Orbán cabinet owes them the expenditure on trolley buses and some utility allocations, and the government did not pay for the Chain Bridge revamp. Furthermore, several government institutions owed them HUF 4.7 billion in May (EUR 12.6 million).