Gergely Karácsony: Budapest’s public transport in danger due to state withdrawals
The plans were approved with 18 yes, 10 against, writes the Word of the People.
During the preliminary discussion, Gergely Karácsony said:
With a two-decision decision, the government took 100 billion forints out of the government’s pocket at the time of the epidemic, so that the local government could not take out a loan or impose a tax, so there is no way to get extra revenue. This money is missing from this business plan. He was not taken home, he is in the state budget.
He added:
no subsidy, just what goes into it, as 38 per cent of domestic GDP is produced in this city and the capital is currently funded by the state, not the other way around. not only the citizens of the capital travel on these buses. Budapest’s most important public service was endangered due to state withdrawals. If there is no change in the know government attitude, no one will get out of this financial situation. The trustee in bankruptcy doesn’t help either. I will opt for financial bankruptcy sooner than tram 4-6 runs every 10 minutes
– system out of the mayor.
Deputy Mayor Kiss Ambrus recalled that the revenue from public transport in the capital is made up of three parts. Their proportion has shifted in recent years.
Ticket and fare prices paid by passengers are only enough for 33 percent of the cost, compared to almost half in 2016. The state contribution has shrunk by almost half. Thus, the capital’s municipality has to do more and more. Today, 80 percent of the business tax is spent on this.
The company expects a total loss of $ 26 billion and will be involved in the remaining replacement of depreciation. Compensation of HUF 14 billion is expected from the state to offset the explosion in energy prices. In addition, BKV would take out a HUF 10 billion overdraft facility, reschedule a HUF 4 billion supplier account and carry forward HUF 6 billion to next year. Public transport cannot be sustained without government help, Kiss Ambrus said in his Népszava.