Tibor Navracsics Announces New Competitive Districts Program to Boost Regional Cooperation

VESZPRÉM: The Competitive Districts program set to launch on January 1 aims to foster greater cooperation among districts and enhance regional development, announced Tibor Navracsics, Minister of Public Administration and Regional Development and a politician from KDNP, during a forum in Veszprém.

According to KDNP, the new initiative stems from recent negotiations and is designed to complement existing regional development efforts. Speaking to village leaders and members of parliament in Veszprém County, Navracsics highlighted the significant progress made by districts between 2010 and 2022, though he noted that the pace of development needs to accelerate. He identified the Central Transdanubian region as successful on a national scale but acknowledged that it still contains districts that are lagging behind.

The program will include the creation of a HUF 65 billion regional development fund, financed by increased business tax revenues. Districts will have access to these funds through a competitive tender
process. Navracsics announced the establishment of development forums at the district level, which will involve mayors and county assembly presidents. These forums will prioritize projects, and the ministry will select which investments to support based on these priorities.

Navracsics emphasized the importance of districts participating in tenders both jointly and cooperatively. He also mentioned that a new regional development service starting in January will assist local governments in processing their tender applications. He stressed that the increase in available funds due to the business tax hike necessitates regional collaboration for effective utilization. The program is expected to provide 141 out of 174 districts with more development funds than previously available through the business tax increase.