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Viktor Orbán announced today the execution of the Hungarian self-government
– wrote Gergely Karácsony on Facebook.
For thirty years, the business tax was the most important basis for public services provided by municipalities. Cutting it in half doesn’t fix it, but it deepens the crisis. For businesses, this is not real help, as the tax rate is quite low, and must be paid on the basis of income anyway – those in trouble pay less first. This announcement by the prime minister has nothing to do with dealing with the economic crisis, it has nothing to do with the cynical politicization of power, Christmas wrote.
For municipalities on the brink of ruin anyway, today’s announcement is the execution itself. It sends many settlements to the ground, pushes them into dire straits, endangers the provision of public services.
Budapest also shares the loss, for the Metropolitan Municipality, this means taking approximately the price of a Chain Bridge, the amount of cuts with which we pay for public lighting, public cleaning and maintenance of green spaces.
Gergely Karácsny also pointed out that the cooperation and joint action of local governments and the participation of the voters in this fight are inevitable.
We have already written about the burden of business tax suspension on local governments. For most municipalities, this is the largest source of budget revenue. Due to its economic strength, the capital is nominally more affected by hip suspension:
Besides Gergely Karácsony, the mayor of Józsefváros, András Pikó, also commented on the words of Viktor Orbán today, Pikó says that “the government will abolish the Hungarian self-government, it will bring back the council system.” His full post can be read here:
Cover image: MTI Photo / Koszticsák Szilárd
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