Local governments that managed their resources well and required little or no consolidation will receive HUF 50 billion in funding over the next four years – Minister of State for local governments András Tállai said.
The decision affects 1176 settlements, including 1018 with less than 2000 inhabitants. These local governments will receive half of the four-year budget by the end of March.
The financial support can be used to perform compulsory tasks, such as road and bridge maintenance and construction, and the modernisation of institutions – Mr. Tállai said.
The level of funding was calculated based on the number of inhabitants and the degree of consolidation required was also taken into consideration.
The smallest affected settlement has 18 inhabitants, is located in Zala county and will receive HUF 1.5 million, while the largest settlement has 1990 inhabitants, is located in Szabolcs-Szatmár county and will receive HUF 20 million.
The State Secretary emphasised that the Government has fulfilled its promise to help indebted settlements exit the debt-trap and at the same time provide financial compensation to those who have managed their finances successfully.
(Ministry of Interior)