The balanced management of local governments is particularly important in times of danger. It is necessary to prevent a local government from becoming insolvent and thus stopping any public service, said the Parliamentary State Secretary of the Ministry of the Interior.

Photo: MTI/Attila Kovács

Bence Rétvári wrote: by amending the Local Government Act, municipalities can only adopt a consolidated budget that does not plan a deficit. Therefore, the budget of neither the municipality nor the municipal companies with a total balance sheet total of HUF 30 billion cannot be in the red as planned.

In the event that a municipality still adopts its consolidated budget with a deficit, the government office appoints a municipal bankruptcy commissioner whose task is to prevent insolvency, he explained.

He added: the bankruptcy commissioner will review the management of the local government and reveal what led to the adoption of the unsubstantiated budget.

In addition, the task of the bankruptcy commissioner is to monitor the management of the local government and to comment on the budget proposals prepared for the council meeting. The bankruptcy commissioner participates in the meeting of the representative body with the right to consult, and his mandate lasts until legal management is restored – read the statement of the state secretary.