Despite the challenges posed by the war, local budgets are demonstrating resilience and growth. According to the Ministry of Finance of Ukraine, the general fund of local budgets received UAH 374.1 billion between January and September 2025, which is UAH 50.3 billion more than in the same period of 2024.

The main sources of community income are:

• Personal income tax – UAH 214.1 billion
• Single tax – UAH 55.9 billion
• Land tax – UAH 33.6 billion
• Excise tax – UAH 26.7 billion
•  Private sector corporate income tax – UAH 18.1 billion
• Real estate tax – UAH 9.5 billion

The regions with the highest income growth compared to last year were Kyiv (+23.8%), Ivano-Frankivsk (+22.4%), Lviv (+21.5%), Volyn (+21.2%), and Zakarpattia (+21.2%).

The increase in economic activity in these regions is primarily due to the displacement of internally displaced persons and businesses from areas where hostilities are ongoing or which have been temporarily occupied.

Concurrently, the lowest income levels are observed in the Donetsk, Luhansk, Kherson, Kharkiv, and Zaporizhzhia regions, a fact that is directly related to the current security situation.

Overall, due to the rapid adaptation of businesses, state bodies, and local governments to wartime conditions, communities managed to increase their general fund revenues by 15.5 per cent compared to last year.

This enables local authorities to continue funding the priority needs of their communities, ranging from social services to the restoration of critical infrastructure.

What is the financial capacity of communities across the country? Read the expert study on the financial capacity of communities prepared by the Decentralisation portal