The government is launching a regional development program that has not been seen since 1990
– announced the Minister of Public Administration and Regional Development Tibor Navracsics at his press conference on Monday. A total of 174 districts will receive guaranteed development funds from January.
The minister reminded that previously, from 2004 to 2010-11, the majority of regions “couldn’t really catch up to the EU average”, so the government changed its catch-up and development policy in order for the various regions to catch up more effectively. According to the head of the ministry, the situation improved between 2013 and 2022, but there are still significant gaps between the individual districts.
Photo: Economx, Tamás Hartl Nagy
There are many districts that could not progress significantly in terms of development during this period, the minister said, adding that the North-East and South Transdanubian areas are lagging behind the average, “catching up with them will be particularly important” in the coming years.
“For this reason, we will start the competitive walking program from 2025, with which we intend to give more dynamics to catching up”
Tibor Navracsics announced, adding that EU and Hungarian budget resources are available for this.
Regarding domestic sources, he said that in 2025, the business tax surplus will be included in this fund, and this framework will become eligible for tenders. He added that the settlements will continue to receive the business tax.
“According to the calculation of the Ministry of Finance, this means a total of HUF 65 billion in 2025”
– the minister answered the question of Economx.
At least HUF 250 million per trip
A total of three categories were selected:
- between HUF 250 and 500 million,
- between HUF 0.5 and 1 billion,
- and over HUF 1 billion.
Where the business tax surplus does not reach 250 million, the government supplements it – that is, every district is guaranteed to receive at least HUF 250 million in development funds from 2025, annually. According to the minister, approximately three-quarters of the districts belong to this category, and six districts centered on the county seat will be able to apply for at least 500 million.
He also announced that a total of 141 districts will receive more development resources than the ipa surplus, and 30 districts will be able to apply for an amount of over HUF 250, while 6 districts will be able to apply for an amount of over HUF 500 million.
The government designates the priorities for which it will be possible to apply – said the minister, adding that the mayors of the district headquarters will decide on this, and the decision will require a two-thirds majority, precisely so that the leaders of the settlements cannot outplay each other.
“We need a middle ground so that underdeveloped regions can catch up”
Spatial development can be an additional engine for the development of competitiveness and economic growth, the Minister of Public Administration and Spatial Development stated earlier at the 62nd Traveling Economists’ Meeting. According to him, the smaller the social and territorial gaps within a country, the more competitive the economy and society.
Photo: Economx, Tamás Hartl Nagy
The most important task of territorial development is to reduce territorial differences within the country – emphasized the minister, adding that ideally this means the less developed regions catching up with the developed ones, in a less ideal situation it is necessary to find some kind of “middle way”, and in the worst case, the developed regions may cause it to detach towards the undeveloped side.
The minister also spoke about the topic at the Macronomx Meetup:
Source: www.economx.hu
