Budapest May Sue Gov't Over Solidarity Tax, Says Mayor
- 10 Sep 2026 5:32 PM
Gergely Karacsony, the mayor of Budapest, said on Thursday that the capital may well end up "suing" the Tisza government by default over the disputed rate of the solidarity contribution unless an agreement is reached over lawsuits already under way.
Asked in an interview published in Nepszava whether the Tisza government would be legally on the hook over the solidarity contribution, Karacsony said "yes", unless agreement was reached with the government covering ongoing lawsuits.
The mayor said reducing the solidarity contribution could only be a temporary solution, and "the entire local government financing system must be transformed".
He said no contingency plan existed if an agreement on financial arrangements were not reached by early October.
Asked about state financing for public transport, Karacsony said the capital had not received any money due to the legal dispute over the solidarity contribution, resulting in a shortfall of about 50 billion forints. He added that this was "pitifully low" compared with actual operating costs.
"In Budapest's case, it is good if state financing covers 40 percent of spending."
Karacsony said the solidarity contribution system must be addressed, but it was unrealistic to expect it to be abolished immediately, as this would mean a 400 billion forint shortfall for the central budget. What is expected, though, is a substantial step towards phasing it out, he added.
"If we wait in vain for this, there will be a huge clash between local governments and the government. This is why I trust there will be a shift," he said.
Karacsony also noted that while "brutal holes" had to be plugged in the operating budget, "a huge amount of money is raining down" on them for development.
He said the government's acquisition of EU funds had exceeded all expectations, and if all planned projects were implemented, it would be a huge step forward for the city.
Source: MTI – Hungary’s national news agency since 1881.
MTI Photo
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