Even last year’s business tax deduction was not covered by local governments, the For InfoRadio President of the Association of Hungarian Local Governments. In comparison, this year’s announcement that the hippie will be halved again, and that the price of various services cannot be raised in proportion to inflation, will put settlements in a worse position than last year, György Gémesi emphasized, not to mention what the increased minimum wage it has a paycheck effect that no one anticipates.
He mentioned the high price of petrol, nearly 500 forints, and the rise in the price of food products, but even the construction industry, as other problems. Thus, according to his wording, local governments will face a lot of spending difficulties in 2022, which, combined with the deductions, will result in a “tragic situation”.
For the time being, György Gémesi has no information about state compensation, only that all the mayors of the Association of County Towns headed by Károly Szita, regardless of party affiliation, have signed a letter to the cabinet asking for not only compensation but also consolidation. “It’s a lot more than last year,” he underlined.
According to the president of the Association of Hungarian Local Governments, the lost revenues due to the withdrawal should be given to the settlements and HUF 150-200 billion should be spent on consolidation. However, György Gémesi believes that this additional support would only allow local governments to manage economically until 2022.
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