Next year, the support of municipalities will not decrease, but will increase by HUF 95 billion, said the Minister of Finance on Tuesday in Budapest, after giving a presentation on next year's budget at the general assembly of the Association of County Cities (MJVSZ).

At the press conference following the presentation, the minister said that the Hungarian economy came back from the pandemic with one of the strongest "bounces"; the 8.2 percent economic growth in the first quarter was one of the fastest in the European Union. He added: however, it must be taken into account that the European and world economic environment, in which the Hungarian economy operates as an open, export-oriented economy, has changed significantly due to the war in Ukraine.

He emphasized: the government is trying to protect Hungarian families from skyrocketing energy prices and preserve the results, which is served by the HUF 640 billion framework of the utility protection fund and the HUF 800 billion framework of the national defense fund.

Mihály Varga said: next year, local governments will receive HUF 95 billion more in support, the total local government support amount will be HUF 969 billion. The total management framework of the local government system is HUF four thousand billion, from which the 3,200 local governments can operate. He recalled that between 2010 and 2014, the state took over HUF 1,300 billion in debt from local governments, making it possible for programs to help the settlements to progress. He indicated: the coverage of the Modern Cities program is also available in next year's budget.

The minister emphasized that they are striving to make the Hungarian economy and the budgets of the settlements crisis-proof even in wartime conditions. He added: in addition to preserving the achieved results, everyone should strive to build up their reserves and reduce their risks, and they provide assistance to the cities with county rights.

At the press conference, Kaposvár mayor Károly Szita (Fidesz-KDNP), president of the MJVSZ He indicated: they asked Mihály Varga that those municipalities that cannot manage the increase in utility costs can count on the help of the government, and they received a guarantee for this from the minister. He added: after seeing the utility bills, he came to the point that he has to protect the residents of Kaposvár from Brussels, because the decisions of the EU are causing an insoluble problem for the municipalities at the moment.

In response to a journalist's question, Mihály Varga said that the easing of the war situation or the end of the wave of sanctions will help food prices return to normal. Regarding the restoration fund, he said that, according to their understanding, they are in the final phase of the negotiation, and he perceives a "situation close to closure". As he said, he is confident that Hungary will not end up in a situation where, as the only EU country, it will not receive the subsidies it is rightfully entitled to, launched due to the pandemic.

Featured image: Mihály Varga, Károly Szita.

Photo: MTI/Attila Kovács

Source: MTI