In July 2025, the Ministry of Finance of Ukraine fully ensured the transfer of interbudgetary transfers to the general fund of local budgets, totalling UAH 10.7 billion, which is 100% of the amount allocated for this month.

In particular:

• UAH 2.1 billion was transferred as a basic subsidy;
• UAH 0.7 billion in additional subsidies.

This means that all communities that were relying on state budget support in July received it in full. Timely state funding is crucial for the stability of local budgets, particularly in wartime.

Local budgets have significant financial resources

As of 1 August 2025, the total balance of funds in local budget accounts and budgetary institutions (including general and special funds) was UAH 163.8 billion. This was UAH 43.3 billion higher than at the start of the year.

This amount of financial resources creates opportunities for communities to:

• timely provide funding for priority needs (salaries, energy, education, healthcare);
• maintain critical infrastructure;
• implement local development, social protection and recovery programmes.

What does this mean for communities?

Financial discipline with regard to the central budget and a stable revenue base are key to maintaining stability in communities during tough times. Having funds in their accounts enables local governments to do more than just ‘survive’; it allows them to plan priority investments in the economy, social services, and security.

It is important to note that responsible and strategic management of budgetary resources at the local level is the key to strong local self-government that can withstand the challenges of war and participate in the reconstruction of the country.