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DK CALLS FOR CUTTING LOCAL COUNCIL 'SOLIDARITY CONTRIBUTIONS'

 

The opposition Democratic Coalition (DK) is submitting a proposal to parliament, calling for a cut in the so-called “solidarity contribution” imposed on local councils by the central government to offset falling revenues. DK board member Judit Földi Rácz told an online press conference that solidarity contributions in next year’s budget of 160 billion forints (EUR 445.1m) amounted a four-fold increase on the sum this year. Földi Rácz insisted that during the coronavirus pandemic, the government had put all “burdens and responsibilities” on local governments without providing additional funding. The government “has even taken away” local government revenues from vehicle taxes, she added. The government’s “promise” to allocate 16% more in funding to local governments in 2021 than it did this year will not raise the real value of revenues, Földi Rácz said. Moreover, it is unclear “who will receive those monies or for what purpose,” she said.