Budapest University of Technology and Economics (BME) is entering a new era of development under a performance-based funding framework, announced the Ministry for Culture and Innovation (KIM) on Friday. The model aims to tie university funding more closely to measurable results in education, research, and innovation.
As part of the government’s broader ambition to strengthen the foundations of Hungary’s economy and respond to future challenges, BME will play a central role in enhancing the country’s engineering and scientific education. According to the ministry, this new funding structure follows negotiations with BME and its governing economic body, culminating in a 25-year framework agreement and a six-year task-based contract.
Under the terms of the deal, BME has committed to significantly increasing enrolment in engineering, natural sciences, and IT programmes at all levels of study—by an average of over 30 per cent. The university will also focus on improving student-centred approaches and expanding foreign-language education opportunities.
Crucially, BME’s engagement with industry is set to deepen. The university aims to increase corporate revenues by up to 80 per cent and multiply its patent and innovation output by more than tenfold. In return, the institution could receive over 10 billion forints in additional funding this year alone, should it meet its performance targets. This figure may grow even further by the end of the six-year evaluation period.
The funding commitment is underpinned by government resolution 1217/2025 (VI. 19.). It marks a major step in Hungary’s effort to create a more competitive, responsive, and industry-aligned higher education system.
Minister of Culture and Innovation Balázs Hankó emphasized BME’s pivotal role: ‘BME is a cornerstone of Hungary’s future, a bastion of Hungarian engineering expertise, and now stands at the threshold of historic renewal and development. We support this transformation with every available tool.’
The government sees this strategic pivot as essential to ensuring Hungary continues to supply highly skilled technical professionals to its economy and that institutions like BME remain engines of national progress.
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