Budapest Mayor Gergely Karácsony has announced that the city has filed for immediate legal protection to prevent the Hungarian State Treasury from seizing its funds ahead of the autumn business tax deadline. In a Monday press conference, he warned that without extraordinary measures, the capital could soon lose its ability to operate.
Karácsony accused the government of systematically weakening Budapest’s finances over the past five years, describing the situation as one where ‘each year, the knife in our back is pushed deeper and twisted harder.’ He said the government’s financial pressure—targeted in the form of what he called a ‘falsely named solidarity contribution’—has grown unbearable, increasing twelvefold in recent years. Despite these challenges, he noted, the city has not cut public services but rather expanded them, shielding residents from the financial penalties intended, in his view, to punish the capital.
According to Karácsony, the city has already paid 32 billion forints in solidarity contributions this year—an amount roughly equal to the annual budget for Budapest’s participatory public projects. An additional 51 billion forints are still expected by the state, threatening to destabilize the city’s operations. ‘The absurdity is that Budapest is now spending more to finance the state than on its most essential public services,’ he said.
The city’s budget, he explained, is based on a Constitutional Court ruling affirming that municipalities cannot be net contributors to the central government’s budget. Although past legal battles with the state have largely ended in victories for Budapest, the issue remains unresolved for the years 2023–2025.
‘If the court does not grant emergency protection, the state is set to withdraw another 12 billion forints’
If the court does not grant emergency protection, the state is set to withdraw another 12 billion forints from the city’s account this Wednesday—an account already running a 40–60 billion forint deficit. ‘This would mean we can no longer fund public services for the rest of the year,’ Karácsony warned.
The mayor also announced plans to meet with trade unions representing public sector workers to assess the threat to their jobs and services. The leadership of Budapest’s transport company, BKK, has been instructed to prepare an emergency plan in case the city is forced to pay the 51 billion forints. Karácsony estimated that public transport capacity might need to be halved if the payment is enforced—though he emphasized this is a precaution, not a decision.
He also criticized the lack of financial awareness among members of the Budapest Assembly, saying many continue to propose service expansions without recognizing the city’s current financial crisis.
‘We must now all recognize our real responsibilities,’ Karácsony concluded, expressing hope that other political groups will understand the gravity of the situation, even if he holds little hope for cooperation from Fidesz.
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