The Deputy Mayor Lajos Barcsa said that the city has a stable economic background. He added that COVID-19 posed a serious challenge to local governments, Debrecen kept the budget in balance by rescheduling investments and reducing expenditures.
In 2015, Debrecen announced a new economic development program that primarily resulted in new, high value-added job growth and significant business tax revenue growth. In 2020, four new companies – Sensirion AG, BHS Trans, 4iG, SEMCORP decided to invest in Debrecen, creating a total of 566 new jobs. Local companies invested HUF 8 billion.
The Hungarian Investment Promotion Agency (HIPA) has also announced a growth subsidy program. In Debrecen, the companies made an investment of HUF 7 billion, partly with state subsidies. The small and medium-sized enterprise sector (SMEs) received HUF 3.9 billion in government support in order to preserve jobs in Debrecen.
In terms of investments, the Hungarian government assisted the enterprises in Debrecen with an investment of HUF 15 billion. It provided HUF 3.9 billion in pure support for the preservation of jobs. The local government contributed HUF 4 billion in cost savings to the success of Debrecen businesses. We helped the businesses of Debrecen with a total of HUF 22 billion in subsidies, discounts and investments, said Deputy Mayor Lajos Barcsa.
The business tax is one of the most important sources of revenue for the city, which can significantly strengthen the development opportunities of Debrecen. The numbers of entrepreneurs grew even during COVID-19. While there were 30,602 business registered in 2020, that number had already risen to 31,983 this year.
The business tax revenue exemption is HUF 3.7 billion in 2021; – it is what local businesses did not need to pay in.
The local government has taken several measures to help businesses Restaurants and cafés could use the public areas where they operate terraces free of charge until 31 December 2021, it means a total of HUF 48 million that business do not need to pay. The rental fee exemption until the end of June 2021 is about HUF 220 million and it has affected about 200 tenants.
The budget of Debrecen in 2021 focuses development, stability and security, in addition to economy and conservative planning.
Photo credit: Municipality of Debrecen | János Miskolczi
