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Finance Minister Sergii Marchenko presents 2026 community support priorities at Congress of Local and Regional Authorities

Ministry of Finance of Ukraine, posted 06 September 2025 14:18

On 5 September, a meeting of the Congress of Local and Regional Authorities under the President of Ukraine took place in Uzhhorod. Attendees included President of Ukraine Volodymyr Zelenskyy, Prime Minister Yulia Svyrydenko, Finance Minister Sergii Marchenko, as well as representatives from the Ukrainian Government, the Office of the President, communities, and local self-government bodies.

During his speech, the Finance Minister emphasised that the draft 2026 State Budget prioritises funding for the security and defence sector. The Government is preparing the 2026 budget with the ongoing full-scale russian aggression in mind, ensuring effective resistance to the aggressor to achieve a lasting and just peace for Ukraine.

At the same time, supporting community resilience is a key component of next year’s budget. Key allocations in the draft state budget for local budgets include:

  • UAH 36.5 billion – additional subsidy;
  • UAH 15.0 billion – compensation for heating tariff differences;
  • UAH 120 billion – education sector (including subsidies, ensuring safe conditions in educational institutions, building and equipping shelters, and purchasing school buses);
  • UAH 29.5 billion – basic subsidy.

“It’s important to recognise that the current circumstances in our country demand decisive steps and specific changes in response to the challenges brought by the war. The financial resources of the budget system must be allocated rationally to ensure balanced and effective use in addressing the challenges we face across all spheres of life,” Finance Minister Sergii Marchenko stressed during the meeting.

Separately, UAH 15 billion is planned for 2026 to provide housing for internally displaced persons (IDPs).

Horizontal equalisation for 2026 has been calculated in line with the 2026–2028 Budget Declaration and the 2025 State Budget Law. Final amounts for interbudget transfers will be determined after the adoption of the Law of Ukraine “On the State Budget of Ukraine for 2026,” no later than 1 December, following its signing and official publication.

The basic subsidy will be allocated to 1,027 territorial communities and 18 regional budgets, while 182 budgets (including 4 regional ones) will contribute to the reverse subsidy. The allocation is based on population data from the State Migration Service, accounting for IDPs as of 1 September 2025.

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