Budapest's Financial Stability Threatened as Government Seizes Funds
Local authorities confirm the seizure of 10.2 billion forints amid ongoing legal disputes over the city’s budget.
The financial operations of Budapest are facing significant challenges following the Hungarian State Treasury's seizure of 10.2 billion forints from the city's accounts.
This action was announced by Budapest Mayor Gergely Karácsony in a Facebook post on Thursday afternoon, where he indicated that the city would hold a press conference on the matter at 3 PM.
Karácsony sought immediate legal protection earlier this week in response to a ruling from Hungary's Supreme Court that mandated changes to the city's budget.
The ruling followed a contentious dispute regarding a solidarity contribution to the national budget, which Budapest's leadership argues could amount to 89 billion forints, including an immediate payment of 50 billion forints.
Both Karácsony and Ambrus Kiss from the Mayor's Office have previously declared that paying this amount would jeopardize the capital's operational capabilities, asserting that the city's budget must remain intact to ensure functionality.
On the other hand, the challenge was supported by the Fidesz party, as proposed by government official Sára Botond.
The Supreme Court's recent decision favored Botond's stance, allowing the government to claim these funds from Budapest.
In light of these developments, the leadership in Budapest may be compelled to implement extraordinary measures to address the budget deficit, potentially leading to service reductions including cutbacks in public transport.
This action was announced by Budapest Mayor Gergely Karácsony in a Facebook post on Thursday afternoon, where he indicated that the city would hold a press conference on the matter at 3 PM.
Karácsony sought immediate legal protection earlier this week in response to a ruling from Hungary's Supreme Court that mandated changes to the city's budget.
The ruling followed a contentious dispute regarding a solidarity contribution to the national budget, which Budapest's leadership argues could amount to 89 billion forints, including an immediate payment of 50 billion forints.
Both Karácsony and Ambrus Kiss from the Mayor's Office have previously declared that paying this amount would jeopardize the capital's operational capabilities, asserting that the city's budget must remain intact to ensure functionality.
On the other hand, the challenge was supported by the Fidesz party, as proposed by government official Sára Botond.
The Supreme Court's recent decision favored Botond's stance, allowing the government to claim these funds from Budapest.
In light of these developments, the leadership in Budapest may be compelled to implement extraordinary measures to address the budget deficit, potentially leading to service reductions including cutbacks in public transport.
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