The Government has improved the mechanism of compensation for the reverse subsidy to local budgets for October-December and compensation for the shortfall in personal income tax revenues. The funds received will be spent by local governments on salaries for state employees and utility bills. This was announced by Prime Minister Denys Shmyhal during a meeting of the Cabinet of Ministers on December 19.

"Our focus remains on the capacity of communities. As of mid-December, the state has provided over UAH 178 billion in transfers to local budgets," the Head of Government said.

In particular, UAH 27 billion for basic subsidies, UAH 24 billion as assistance to hromadas affected by the aggression, UAH 87.3 billion as an educational subvention, UAH 1 billion for the purchase of school buses, UAH 3 billion for the maintenance of hospitals and much more.

"The Government has also allocated almost UAH 10.6 billion in subventions to local budgets to implement projects in the social, as well as housing and utilities sectors. We are talking about repairs and reconstruction of schools, hospitals, residential buildings, and water supply systems. It is important that local managers demonstrate high efficiency in the management of these resources," the Prime Minister stressed.

Overall, in the first 11 months of this year, local budget revenues, excluding transfers, increased by 15% compared to 2022. Account balances have increased by almost 58% since the beginning of the year and amount to about UAH 182 billion.