The Cabinet of Ministers of Ukraine has approved the distribution of UAH 1.4 billion in additional subsidies to 360 community budgets, as well as to regional budgets in de-occupied and war-affected territories, for the third quarter of 2025.

The subsidy is intended to compensate for losses in local budget revenues caused by hostilities, temporary occupation or proximity to the front line, in particular:

• UAH 635.7 million — for 164 local budgets as compensation for losses from personal income tax;
• UAH 383.8 million — for 81 communities as compensation for losses from land payments;
• UAH 38.3 million — for 77 communities as compensation for losses from property tax, other than land;
• UAH 56.8 million — for 38 communities as compensation for losses from single tax;
• UAH 297.3 million — for the regional budgets of the Donetsk, Kirovohrad, Odesa, Poltava, and Sumy regions as compensation for losses from corporate income tax.

The state consistently supports communities affected by the war or located near the front line. This year, local budgets in these areas received more than UAH 15.9 billion in additional subsidies.

It is crucial that communities use these funds effectively to support schools, hospitals, social services, and local economy.

As previously reported, additional subsidies for local authorities are a financial support mechanism that helps communities in affected areas ensure the continued operation of critical institutions and maintain financial stability during wartime. These subsidies are provided for by the Law of Ukraine ‘On the State Budget of Ukraine for 2025’.