He decided to support local governments at the last meeting of the government. After a significant tax reduction was implemented for small and medium-sized entrepreneurs, this meant a loss for local governments, said the Government Information.
The government will provide a total of HUF 23 billion in support in a proportionate and fair manner, of which HUF 1.7 billion will contribute to the renewal and construction of nurseries, educational and cultural institutions, announced Chancellor Gergely Gulyás.
Three categories were defined based on revenues, the municipal budget situation and the amount of savings . Development support is given to the richest settlements, but operational support is not given.
In the second category, 75 percent of the lost business tax revenue is reimbursed.
In the third category – the poorest settlements – this ratio is 100 percent.
The minister thanked the municipalities for their participation in the prevention of the epidemic and said that the settlements will also benefit significantly from the economic growth.
Source: government info
