The Ministry for Development of Communities and Territories of Ukraine has published the Monitoring Report on the Reform of Local Self-Government and Territorial Organisation of Power as of 1 April 2026.

The document outlines the progress of key reform instruments, the functioning of institutions at the local level, and trends in budgetary indicators under martial law.

Key trends

The first quarter of 2026 is characterised by:

• an increase in the use of community cooperation tools;
• the continuation of international activity by communities;
• changes to the network of starosta districts;
• the expansion of the network of Administrative Service Centres (ASC) alongside inconsistencies in their operation;
• an unchanged number of military administrations in communities;
• a decrease in the share of local budgets in GDP and the consolidated budget;
• an increase in revenue and expenditure per capita, with significant regional variations.

Inter-municipal cooperation

As of 1 April 2026:

• 757 communities use cooperation tools (+20);
• 818 agreements have been signed (+56).

The largest number of projects is in education, healthcare, and social protection — 496. Other areas have a smaller share, notably fire safety — 21 projects, housing and utility services — 10, and urban improvement — 10, whilst 281 projects fall under the ‘other’ category.

The increase in the number of agreements and communities involved in cooperation indicates the growing use of this instrument as a mechanism for jointly addressing issues of local importance. The structure of the projects suggests that it is used primarily in the provision of basic public services.

International partnerships of communities

As of 1 April 2026:

• 491 communities have international partnerships (+4);
• agreements have been signed (+12);
• cooperation covers 64 countries.

The highest number of international partners is recorded in Lviv (288) and Zakarpattia (286) regions.

International partnerships are a tool for integrating communities into the European cooperation space. They facilitate the exchange of management practices, participation in joint projects, and access to institutional support. Ukrainian communities participate in such partnerships as full partners, notably by sharing their experience of local self-government under martial law.

The institute of starostas

As of 1 April 2026:

• 7,736 starosta districts have been established (-14);
• 7,308 starostas have been appointed (-94).

The reduction in the number of starostas and starosta districts reflects the process of clarifying their network and staffing structure. These figures are affected by both the organisational decisions of communities and the security situation in certain regions.

Network of Administrative Service Centres

According to data as of 1 January 2026 (the latest available period in the Monitoring):

• 5,716 Administrative Service Centres (+72);
• 5,405 are operational (+75);
• 311 are temporarily closed (-3).

The highest number of temporarily closed centres is in Luhansk (112), Zaporizhzhia (73), Donetsk (58), and Kherson (50) regions.

The total number of network facilities and the number of operational Administrative Service Centres is increasing. Meanwhile, the geographical concentration of temporarily closed facilities reflects the impact of the security situation on the availability of administrative services.

Military administrations in communities

As of 1 April 2026:

• 214 military administrations have been established (no change);
• 23 heads of military administrations do not have the powers provided for by law (+6).

The number of military administrations set up remains unchanged. The increase in the number of cases where their heads lack the necessary powers reflects differences in how this institution is implemented in different communities.

The share of local budgets in GDP

In 2025:

• the share of own revenue in local budgets — 5.8% of GDP;
• the share of expenditure — 8.7% of GDP.

In previous years, these figures were higher.

The trend indicates a decline in the share of local budgets in GDP compared with previous years.

Share in the consolidated budget of Ukraine

In 2025:

• share of local budget revenue — 14.6%;
• share of expenditure — 12.9%.

In 2022, these figures were 24.4% and 15.6% respectively.

The reduction in the share of local budgets in the consolidated budget reflects a change in the balance between the levels of the budgetary system.

Transfers from the state budget

In 2025:

• the total amount of transfers — UAH 196.1 billion;
• their share in local budget revenue — 26.1%.

The share of transfers in local budget revenue remains stable compared with previous years.

Local budget revenue per capita

January–February 2026:

• UAH 2,388.5 (+15.5%).

The highest growth rate:

• Kyiv region — 125.8%;
• Zakarpattia region — 124.4%.

The lowest growth rate:

• Donetsk region — 76.3%.

Share of own revenue

In January–February 2026:

• share of own revenue — 71.2%.

The highest values:

• the city of Kyiv — 90.4%;
• Dnipropetrovsk region — 79.9%.

The lowest values:

• Luhansk region — 12.0%;
• Donetsk region — 27.0%.

The figures indicate significant variations in the financial capacity of local budgets.

Structure of local budget revenue

In the revenue structure:

• PIT — 54.8%;
• single tax — 20.6%;
• land tax — 8.3%;
• excise duty — 7.5%.

The revenue structure remains stable, with personal income tax accounting for the largest share.

Expenditure per capita

January–February 2026:

• UAH 2,709.4 (+23.5%).

The rate of expenditure growth (23.5%) exceeds the rate of revenue growth (15.5%).

Expenditure on the maintenance of local governments

The average figure:

• 10.5%.

The highest values are for:

• Luhansk region — 23.8%;
• Kherson region — 17.2%.

Figures vary between regions depending on budget sizes and operating conditions.

Functional structure of expenditure

The largest expenditure categories are:

• education — UAH 51.3 billion;
• general state functions — UAH 11.5 billion;
• social protection — UAH 7.6 billion.

The structure of expenditure demonstrates the priority given to funding basic public services.

The monitoring report as of 1 April 2026 shows the development of tools for cooperation between communities, the maintenance of international engagement, and the functioning of key services at the local level.

However, there has been a decrease in the share of local budgets within the overall budgetary system, and significant regional variations in indicators remain.