Budapest and Hungarian government reach landmark funding and transit deal

The Hungarian government and the city of Budapest have reached a significant agreement aimed at stabilizing the capital's finances and reforming public transportation. As part of the deal, the government will provide a one-time support payment of 120 billion forints to Budapest, which will allow the city to settle certain debts and pay its solidarity contribution. In exchange, the government will withdraw previous legal claims against the city, and Budapest has committed to achieving 20 billion forints in operational cost savings by 2027.

The agreement also introduces major changes to regional transit. Starting January 1, the scope of the Budapest Transport Centre (BKK) may expand to include the metropolitan agglomeration. This initiative aims to create a unified transport system by synchronizing schedules, increasing bus frequency, and extending a unified ticketing system to HÉV lines and agglomeration buses. The goal is to provide service quality comparable to the city center for residents living just outside the capital's borders. Additionally, the deal includes provisions for a unified parking system, allowing the city to collect parking revenues directly.