Budapest May Become Insolvent by Year-End, Deputy Mayor Warns

If there isn't an immediate intervention, "the Metropolitan Government will become insolvent by the end of the year,” Budapest Deputy Mayor Ambrus Kiss said in a recent interview, reported. The politician blames ever-increasing expenditures and the central government for the situation. In order to avoid insolvency, this year’s budget had to be modified in 65 points, Kiss revealed. In addition, the state still needs to pay out some HUF 12 billion (EUR 34.4 million) of subsidies due for public transport, until when it is up to the capital to advance that amount to Budapest transport company BKK. The deputy mayor forecasted that Budapest will run out of all its operating state bonds and cash by September 4, so from then on the city will have to operate on an overdraft facility, at least until the second part of the advance business tax comes in. “If, on the other hand, the normative fails to come in or there will be more lockdowns coming because of the pandemic, we’ll start next year with billions of loans, which would violate the Economic Stability Act,” Kiss said. Nonetheless, workers’ wages are not in a danger, Kiss claimed, explaining that in that case they would rather freeze up the payments that are due for the central government. Read more.