According to an amendment to the local government act, passed by a strong majority in parliament last month, those found sleeping on the streets will first receive a warning.
They can subsequently be imprisoned or ordered to pay the fine.
The move has provoked widespread criticism, including from Hungary's human rights ombudsman, the BBC's Nick Thorpe reports.
Miklos Vecsei, deputy head of the Hungarian Maltese Charity Service, said the law had not been passed on the basis of any rational or professional criteria but because the public were fed up with the homeless.
Since people who cannot afford a home would likely be unable to pay a fine, one would assume that the state will have to incarcerate homeless people caught breaking the law. Link -via Arbroath
(Image credit: Wikipedia user Nuclear Vacuum)