Photo: Viktor Orban / EPA / ZOLTAN FISCHER

Hungarian Prime Minister Viktor Orban’s party is proposing a bill that would cut off domestic funding for independent NGOs in an effort to stem growing opposition less than a year before elections, Bloomberg reports.

According to the bill, non-governmental organizations, including media outlets, suspected of receiving funding from abroad and "threatening Hungary's sovereignty" will be deprived of the right to receive 1% of personal income tax.

It is noted that this money is one of the main sources of domestic funding for the country's non-governmental organizations.

In addition, such organizations can freeze assets, impose stricter reporting requirements, and impose fines.

The bill has already been submitted to parliament and is likely to be passed, as Orban's Fidesz party has a two-thirds majority in the legislature.

The consideration of the new law comes as opposition leader Peter Magyar – a former Orban supporter – has overtaken Fidesz in opinion polls, focusing on corruption and the high cost of living.

The newly created Agency for the Protection of Sovereignty will be responsible for monitoring compliance with the new law.

This structure will have the authority to determine which organizations receive foreign funding, introduce reporting, and even require the submission of asset declarations from the heads of public organizations.