National Cultural Fund

Grants from the National Cultural Fund — funded 85% by the Ötöslottó gaming-tax earmark. The ministerial discretionary frame (up to 25% of net revenues, per 1993 Act §7/C) is eliminated in Year 1 on transparency grounds. The remaining competitive grant programme phases out at 20% per year over 5 years. Austrian price theory: state cultural grants substitute political preferences for audience preferences. A private arts patronage tax credit — taxpayers directing SZJA to accredited arts organisations — achieves the same output with citizen selection.

Administrative costs of the Nemzeti Kulturális Támogatáskezelő (NKTK), which has managed Fund resources since June 2023. At 1,470 mFt these costs track the grant portfolio and phase out proportionally as the grant envelope reduces. The FSI accepts these costs during the phase-out period as necessary for orderly wind-down; eliminating them prematurely while the grant portfolio is still active would create governance gaps. By Year 5, the NKTK function is absorbed into a leaner secretariat supporting any residual private-patronage matching programme.

Operating support for cultural institutions classified as central budgetary organs — a small line (205 mFt) without individual institution names at this aggregation level. A nominal freeze is appropriate pending an institution-by-institution audit. The FSI requires that each institution above 20 mFt be separately identified and its operating cost benchmarked against comparable institutions. Cultural institutions with genuine public-good characteristics (archives, national museums) may retain direct budgetary support; performing arts venues capable of generating ticket revenue do not.