The state effectively assists local authorities in performing their functions through grants and subventions. This was emphasised by Prime Minister Denys Shmyhal at a Government meeting on 10 January.

“This year, local budgets will receive almost UAH 520 billion from taxes, UAH 25.5 billion from the basic grant, UAH 40.6 billion from additional grants, and UAH 151 billion from subventions. We expect these resources to be used efficiently for the benefit of Ukrainians,” the Head of Government noted, adding that thus communities would have sufficient resources to maintain infrastructure and help people.

The Prime Minister stressed that Ukraine had maintained financial stability both at the central and local levels. The general fund of local budgets received about UAH 451 billion. This is 24% more than in 2023.

“USD 41.7 billion of external financing from partners in 2024 allowed us to cover non-military expenditures that affect the quality of life of millions of people. It is important that a third of these revenues are grants. This significantly mitigates the debt burden on the state budget,” said Denys Shmyhal.

The Prime Minister noted that the state was confidently entering the new fiscal year, with internal resources, reliable support from partners, and fulfilled obligations to citizens. Last year, the state budget received UAH 3.1 trillion from taxes, duties and other payments.

“This includes funds paid by businesses and Ukrainian citizens. Each and every one of them makes a significant contribution to our financial stability and thus to the victory of Ukraine. I am grateful to everyone who contributes to the state budget, from which our Government finances defence spending,” the Prime Minister said.

According to the Head of Government, it is planned to attract more than USD 38 billion in external financing in 2025.

“We also expect to receive USD 50 billion from the use of the aggressor’s frozen assets. In particular, today the state budget of Ukraine has received the first EUR 3 billion from the European Union, which is secured by the proceeds of russian frozen assets,” the Prime Minister said.