The main purpose of this publication is to present the legal status of Budapest between 1990 and 1994 and to expound the evolution of its powers and functions between the abovementioned period. Basically legal perspective is reflected in this study therefore it follows the legislative hierarchy particularly. First of all, I will try to define what legal status really is in that context I will use it in this study. Having defined the conceptual questions, I will present the evolution of powers and functions of the capital by analysing the constitution the concerning acts and their ministerial reasonings as well.