Government allocates over UAH 74 billion in grants and subventions to support local budgets in 2025: Denys Shmyhal

The Government team is systematically working to enhance resilience at the local level, ensuring that every person in a community receives essential services. This was emphasised by Prime Minister Denys Shmyhal during the III International Summit of Cities and Regions “United for Peace and Security”. The event was attended by President of Ukraine Volodymyr Zelenskyy and Speaker of the Verkhovna Rada Ruslan Stefanchuk.

Denys Shmyhal noted that to achieve these goals, the Government is focusing on four key areas, the first being the financial capacity of local budgets.

“From January to May 2025, we allocated over UAH 74 billion in grants and subventions to local communities. Revenues to local budgets have increased compared to last year: personal income tax by 20%, single tax by 13%, land payments by 14%, and excise tax by 38%. The balance in local accounts amounts to nearly UAH 160 billion,” said Denys Shmyhal.

Recovery is another priority for the Government. According to the Prime Minister, nearly 900 reconstruction projects are being implemented locally with funds from the Fund for the Elimination of the Consequences of Aggression and the European Investment Bank. In 2025, 91 projects worth over UAH 200 billion will be financed through Project Investment Management.

This year, the Government has already allocated UAH 14.5 billion in additional grants to address the consequences of the war. An additional UAH 1.8 billion has been directed to 180 frontline communities for shelters, emergency works, and repairs to utility networks.

The State Agency for Restoration and Infrastructure Development has been allocated UAH 5.2 billion for the comprehensive reconstruction of Borodianka, Trostianets, Tsyrkuny, Posad-Pokrovske, and Yahidne.

“Our recovery priorities remain unchanged: housing, education, healthcare, energy, and clearing land of russian mines and shells,” emphasised Denys Shmyhal. He added that under the Ukraine Recovery Programme, the state has distributed UAH 5 billion to communities, and through the eVidnovlennia programme, over 89,000 families have received compensation for damaged housing, with nearly 18,000 certificates issued for destroyed property.

The third area of Government focus, as outlined by the Prime Minister, is energy. Citizens have secured over 1,800 energy loans worth UAH 534 million, while businesses have received loans exceeding UAH 1.6 billion.

“This year, we also plan to connect over 900 MW of capacity from cogeneration units and modular boiler houses. This is part of our major battle for light and heat, in which we will undoubtedly succeed,” stressed Denys Shmyhal.

Activating the local economy, another Government priority, promotes private investment and accelerates recovery and development.

The Prime Minister highlighted that through deregulation and digitalisation, the state is creating a business-friendly environment.

“Ukrainians have received UAH 6.2 billion in grants to start and develop their businesses, and over UAH 6 billion in grants for the development of processing industries,” he noted. Denys Shmyhal also mentioned that nearly 2,000 veterans and their families have started businesses thanks to state grants. Additionally, around 100 industrial parks have been registered locally.

“The Government maintains constant communication with local communities. We are always ready to help and support,” emphasised the Prime Minister.