Government approves new state grant and parking reform for Budapest

The government’s latest decree, released in the Magyar Közlöny on Friday, provides a central-budget grant to the Budapest City Council to maintain its operational capacity and ensure uninterrupted public services up to 2026, as well as to clear outstanding liabilities. The grant is financed by reallocating resources from the Central Residual Accounting Fund and will be disbursed after the supporting document is issued.

The agreement, reached on 1 October, also includes a plan to unify the city’s parking system under municipal control, directing parking revenues into a dedicated road fund. Mayor Karácsony posted that the grant safeguards the city from bankruptcy and eliminates its status as a net contributor to the state budget. He also noted that the new parking arrangement is intended to benefit drivers, residents, and district budgets alike, though several district mayors have voiced opposition, claiming they were excluded from negotiations.