In the picture, we tried to simplify things to the level of the average People’s Word readers. We have outlined two examples.
2010: I'll give you 1000 forints, but it costs 400 forints to run the schools, and that's your job!
Now: I'll give you 800 forints and take over the operation of the schools.
I give less money: YES
Do you have more money? YES!
It is very pathetic that this body considers itself an independent press. This is not journalism, this is disinformation!
THEMinistry of Financewritten by:
️ Caution, sham!
In his article today, Népszava once again claims untruth, this time with a misleading article about the financing of local governments. Many of the slips in the article are itemized by Péter Benai, Secretary of State for Public Finance, below:
1️⃣ The journalist falsely sees the disadvantages suffered by the municipalities as the fact that in 2012-2013 the government "took away the health and education institutions" from the municipalities. The reality, on the other hand, is that the government has also taken over the funding of these institutions, thus reducing the burden on local governments. The journalist omitted from the article for some reason that in the same period the government also took over the debts of the local governments under the left-wing governments, a total of HUF 1,369 billion.
2️⃣ The halving of the business tax also arises in the article, which, according to the statement, endangers the performance of the tasks of the settlements. In contrast, the reality is that halving the business tax accounts for about 1% of local government budgets, while providing huge help to the smallest businesses. Settlements with less than 25,000 inhabitants and settlements with a more unfavorable economic situation above this population were compensated 100% by the government, out of a total of more than HUF 71 billion. Not to mention that from 2010 to 2020, local government business tax revenues have increased by 80%. This means an increase of 10% year-on-year and an increase of one hundred billion in nominal terms: from HUF 443.1 billion in 2010 to HUF 788.3 billion in 2019.
3️⃣ The article does not mention that the government is running the Modern Cities Program and the Hungarian Village Program specifically to support municipal investments. Together with other EU programs, their total value is close to HUF 400 billion. Municipal budget subsidies are also growing significantly every year: in 2021, for example, municipalities received 23% more money than in 2020.
4️⃣ The article also falsely states that local governments are spending less money today than in 2010. “Apples to pears” tries to compare the 2010 funding and task system with the completely different 2022 system. The truth is that local governments can manage significantly more resources this year than in 2010: In addition to the targeted subsidies mentioned in point 3 alone, local governments received HUF 578.2 billion in state resources in 2010, and 908.9 billion in 2021. billion forints.
5️⃣ Examining the local government data at the end of September 2021, it can also be stated that the debt stock of local governments also decreased significantly: from HUF 220.3 billion at the end of 2019 to HUF 195.8 billion. At the same time, we know from the settlements' own reports that the cash balance of local governments at the end of September 2021 was massively surplus; the usable cash stock of local governments increased by tens of billions of forints even compared to 2019, reaching HUF 1,100 billion!
👉 Thus, it can be seen that despite the distortions published in Népszava, the local government system is in a stable, constantly strengthening financial and economic situation. Misleading, unprofessional writings like this are just a means of creating mood.
Orbán gives and does not lose!
Instead of lying left-liberal propaganda, here is the reality
1800 billion forints!
"Orbans", attention! Settlements can apply for so many development resources! So it is not stolen by anyone, but the municipalities win it through tenders and develop from it
Liar article on the dirt sheet (only for the nervous!)
More "municipal" articles