Orbán cabinet: Further tightening of rules on the budgetary management of local councils

Public Administration and Regional Development Minister Tibor Navracsics outlined legal measures introduced to tighten the fiscal management of local councils and make their financing more transparent at a conference in Godollo, on the outskirts of the capital, on Monday.
Addressing the the conference organised by local councils association MÖSZ and the Konrád Adenauer Stiftung, Navracsics said the measures, contained in legislation passed together with the 2025 budget, prohibited local councils from selling their receivables to factors, introduced stricter requirements for reporting to the State Treasury and required development support over HUF 50m to be transferred through accounts with the Treasury.
Navracsics noted that the government had put an end to the much debated special economic zones in 2025 and would channel development funding to those areas through the Competitive Districts Programme. The government also clarified rules on payment of additional revenue from the local business tax into the central budget, he added. He said HUF 65bn in development support would be earmarked in the framework of the Competitive Districts Programme. Three-fourths of districts will get HUF 250m, in large part from the central budget, he added.
If the programme functions well, the government could weigh gradually rechanneling revenue from the solidarity contribution to the scheme and to a regional development fund from 2026, he said.
As we wrote earlier, court rules in favour of Budapest council in lawsuit over solidarity tax, read details HERE
Read more articles about the tax and VAT system in Hungary here