Karácsony: New budget ensures Budapest pays no more than it receives

Budapest’s budget for next year has been drafted “to retain [the city’s] self-determination and resources”, Gergely Karácsony, the capital’s mayor, told a press conference on Wednesday.

According to the mayor, the draft was made under the assumption that “Budapest will pay as much solidarity tax to the central budget as it receives from central coffers to finance its services.”

Karácsony insisted that the central budget was aimed at “furthering shrinking” municipal governments by adding further funding cuts. “The capital’s budget has been drafted in response to that,” he added.

When drafting its budget, the city “did not assume that it could retain its net payer position”, the mayor said, adding that “under a Constitutional Court ruling the city would pay as much solidarity tax as much funds it will receive under the normatives, not a penny more.”

“We’re not going to budget any excess tax payments that could be confiscated from the city,” Karácsony said. Even with those possible payments not included in the budget, the city’s finances “will be extremely tight”, he added.

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