Hungary’s annual August 20 State Foundation Day celebrations will be organized for less than one-third of the originally planned budget, with a simpler, more rational and cost-effective approach, Interior Minister Gábor Pósfai announced on Facebook on Tuesday.
According to the minister, the National Event Management Agency (NRÜ Zrt.) signed a contract worth HUF 12.5 billion (gross) in February 2026 for the organization of this year’s nationwide celebrations.
He added that a separate contract worth approximately HUF 5 billion had already been signed in December 2025 for the traditional fireworks display.
Together, the two agreements amounted to HUF 17.5 billion (gross). Both contracts were awarded to Lounge Event Kft., which had already received a 50 percent advance payment, totaling HUF 8.7 billion, while preparations for the fireworks had also begun.
Pósfai said that, due to ongoing criminal proceedings involving the Lounge Group, bank account freezes, enforcement measures and concerns over the company’s ability to fulfill its obligations, NRÜ terminated the contracts at the end of June.
Despite the limited time remaining before the national holiday, the agency and government officials immediately launched preparations for a new public procurement procedure and revised the technical plans for the event. As part of the process, they assessed market opportunities and contacted event organizers with the professional expertise and technical capacity to safely deliver the celebrations.
The minister emphasized that the revised program will cost less than one-third of the original budget, while maintaining a simpler and more economical organizational structure.
He stressed that the spending cuts will not affect the dignity of the national holiday, public safety, or the quality of the key family, cultural, musical and evening visual programs, including the traditional fireworks display.
(MTI)
