in parallel hungary reformed its subsidy system today the subsidy is targeted towards areas that face very high costs of service municipalities can apply for central subsidies if the costs before subsidy faced by the residents exceed a certain threshold in the threshold was huf m eur m for bulk water bought huf m eur m for total residential water supply costs and huf m eur m for combined residential water supply and sanitation costs subsidy claims are resolved by an interministerial committee led by the ministry of rural development which allocates the total available budget appropriation taking into account criteria such as the residential water consumed during the previous year the expected changes in water consumption the effective and predicted costs of service and whether the claims of concerned municipalities are supported by the board of representatives