Today, on 27 October, the Government approved the allocation of an additional subsidy for the third quarter of 2023 in the amount of UAH 1 billion 153.6 million.

These funds will be used to meet the needs of the regional budget of Luhansk region and 119 budgets of territorial communities, namely:

• the regional budget of Luhansk region and 13 budgets of territorial communities where active hostilities are taking place, in the total amount of UAH 175.4 million;
• 12 budgets of territorial communities where active hostilities were taking place or whose territories have been de-occupied, in the total amount of UAH 167.5 million;
• 94 budgets of territorial communities where no hostilities are (were) taking place, in the total amount of UAH 810.7 million.

The additional subsidy will be distributed to local budgets based on the actual personal income tax revenues to local budgets in January-September 2023. The funds will be allocated to those communities whose revenues have decreased this year compared to the previous year.

According to the resolution, local governments in the de-occupied, temporarily occupied and other territories will receive additional funds to effectively exercise their powers and meet their priority needs at the local level.

Background

The State Budget of Ukraine for 2023 provides for UAH 24 billion in additional subsidy to local budgets for the exercise of the powers of local governments in the de-occupied, temporarily occupied and other territories of Ukraine negatively affected by the full-scale russian armed aggression.

Based on the results of personal income tax revenues to local budgets for 2022 and the second quarter of 2023, an additional subsidy of over UAH 14.6 billion has already been allocated to local budgets.