The Cabinet of Ministers of Ukraine has adopted the Ministry of Finance’s draft order ‘On Approval of the Allocation of Additional Subsidies from the State Budget to Local Budgets for the Exercise of Local Self-Government Powers in De-Occupied, Temporarily Occupied, and Other Areas Affected by the Full-Scale Armed Aggression of the Russian Federation’.

The mechanism for allocating the additional subsidies takes into account the needs of de-occupied, temporarily occupied, and frontline territories, as well as communities that have been negatively affected by the war or have taken in relocated institutions. It aims to reduce disparities in local budget revenues and support the funding of priority expenditure in education, healthcare, and social protection.

The document provides for the allocation of UAH 273.2 million in additional subsidies from the state budget to local budgets in accordance with Resolution No. 80 of the Cabinet of Ministers of Ukraine dated 28 January 2026, namely:

• for the regional budgets of Donetsk and Luhansk regions – UAH 33.5 million;
• for the budgets of 39 urban communities – UAH 157.3 million;
• for the budgets of 74 rural and settlement communities – UAH 82.4 million;

As previously reported, last month the Government designated the payment of salaries to education and social workers as a priority, channelling funds from specific additional subsidies from the state budget to local budgets. According to the budget programme, UAH 30.4 billion is earmarked for additional subsidies from the state budget to local budgets in 2026. Of this amount, nearly UAH 13 billion has already been allocated following the approval of the State Budget for 2026.