Hungarian gov't increases its share of the cost of certain local development projects
The Hungarian budget will not receive any cohesion funds from the 2021-2027 EU budget for the time being, as the European Commission has stopped payments due to the rule of law procedure and horizontal eligibility items. This does not mean, however, that no funds are coming from Brussels: payments for the 2014-2020 programming period are still ongoing.
Now the Orbán-led government has decided to adjust the funding levels for these co-financed programmes, not from EU funds, but from the Hungarian budget's own-cost share. According to the decree, published in the Hungarian Official Gazette on Tuesday evening, a maximum of HUF 36.68 billion in costs not eligible for EU funding will be financed by using the part earmarked for EU projects over and above co-financing.
The list includes a project for the development of an industrial area in Kisbér for the establishment of SMEs, which could draw down HUF 800.7 million for the improvement of the industrial park, instead of the current HUF 695.4 million. Extra money will be allocated to more road projects: 1.5 billion instead of 754 million will go to the development of bypasses and junctions in Zala county, and the same will be done for the redevelopment of the city centre of Debrecen, with an extra HUF 5 billion instead of the original 4.13 billion.
Among the larger items, it is worth mentioning that Szákszend will be allowed to spend 105 million HUF instead of 50 million HUF on rainwater drainage, but Ravazd will also be able to spend more for the same purpose. Miskolc may spend its increased budget on health improvements for two general practitioners' surgeries, Zaránk for home help and Dióskál for energy improvements.
