Hungarian gov't reallocates massive funds, but it's unclear how the money will be used

The legislation signed by Prime Minister Viktor Orbán does not specify exactly how the government intends to use the funds. The decree merely states that the funds can only be used for material expenses, i.e. the costs required for day-to-day operations such as central procurement and financing state supply tasks.

The residual settlement fund is where budget funds remaining from previous years are accumulated. These funds can be used during the year to cover unexpected expenses in a particular area or to provide additional resources for maintaining operations.

The entire 35 billion budget will now go to the KEF, suggesting that there have been significant and unforeseen expenditure increases in the state procurement and supply system.

The decision takes effect immediately, giving KEF immediate access to the funds.

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