From the 2026 budget audit
One city of 20,000 receives 4.5 billion Ft — from the national budget, for no published reason.
A named capital appropriation for Karcag's property development concentrates roughly 225,000 Ft per resident of one municipality on a national taxpayer base, with no formula, no published criterion, and no competitive allocation — just a name in the budget.
About 1,115 Ft per taxpayer — 4.5 billion Ft total — earmarked for one municipality's property development project, allocated by name without any rule that would explain why Karcag rather than another town of similar size.
What you see — and what you don't
The seen: Karcag's 20,000 residents with a nationally-funded development project worth approximately 225,000 Ft each. The unseen: the other 4 million taxpayers — including residents of towns with similar development needs and no named budget line — who fund a concentrated benefit allocated by political discretion rather than any published formula.
Objection
"Smaller cities need development investment that their own budgets cannot cover — without national earmarks, disadvantaged towns would fall further behind."
Answer
If Karcag's development priorities are genuine, they can be financed from Karcag's own budget, from borrowing serviced by the project's returns, or from the formula grant that allocates capital to every municipality on equal terms. A named national earmark bypasses all those channels in favour of a single political allocation. The contrast with the Cím 1 formula grant is the point: the formula at least allocates by rule; this allocates by discretion.
Share if you think 4.5 billion Ft in the national budget should name a reason, not just a town.
The analyst's verdict
Support for the property development of the City of Karcag
Rationale
A named capital appropriation to a single municipality — Karcag, in Jász-Nagykun-Szolnok megye, population approximately 20,000 — for property development. A line-item capital grant earmarked in the national budget for one named municipality's development project is the clearest form of the public-choice pattern in this chapter. Karcag's roughly 20,000 residents receive a project worth approximately 225,000 Ft per resident; the cost is spread across the entire national taxpayer base, of whom that municipality's residents are a small fraction. There is no formula, no published criterion, no competitive allocation — the budget simply names the recipient. This is subjective allocation of national tax revenue to a geographically-concentrated beneficiary by political officeholders. The contrast with the Cím 1 formula grant is the whole point: the formula grant, whatever its other defects, at least allocates by rule; a named single-municipality earmark allocates by discretion. If Karcag's property development is worth doing, it can be financed by Karcag — from its own revenue, from borrowing serviced by the development's returns, or from the formula grant that funds every municipality on equal terms. Classified Immediate Cut: there is no protected reliance interest that abolition would violate; if the project is mid-contract, the honest treatment is to honour signed contracts through run-off and cut the unobligated remainder, but a forward appropriation for a named project carries no such claim by default.
Transition mechanism
Eliminate the earmark. Honour any legally-binding signed contracts through run-off; cut the unobligated balance. Karcag finances genuine development priorities from own revenue, borrowing, or the equal-terms formula grant.
Affected groups
The City of Karcag and its development project; against this, the national taxpayer base funding a geographically-concentrated benefit.
Sources
- Karcag nepessege, lakossaga (2020-2025), KSH-adatok alapjan · Nepesseg info (2025)
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