Ministry of Finance: Local budget resources will change in 2025.
The Ministry of Finance reports that the draft state budget for 2025 provides significant support for local self-government. According to this draft, the general fund of local budgets will increase by 15%, from UAH 285.1 billion to UAH 327.7 billion. The largest part of the increase will come from personal income tax (PIT) revenues, which will rise from UAH 235.4 billion to UAH 268.7 billion. It also foresees an increase in the subsidy for local budgets by 31% to UAH 37.5 billion, aimed at supporting de-occupied territories, the Ministry of Finance states.
According to the Ministry of Finance, the basic subsidy will increase by almost 15% to UAH 24.2 billion. It is also planned to allocate a grant for compensation of tariff differences at the level of UAH 12.2 billion, which will ensure stability in the public service sector. The introduction of reverse subsidies will promote a more effective distribution of resources among regions.
In addition, the draft state budget includes compensation for damaged or destroyed housing due to hostilities in the amount of UAH 4.0 billion. Funding is also planned within the framework of public investment management (PIM) of the State Regional Development Fund (SRDF) in the amount of UAH 1.0 billion, the Ministry of Finance reports.
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