The Cabinet of Ministers reduced subsidies for local budgets in the draft state budget for 2026 for the second reading, recalculating the population according to the State Statistics Service and the register of internally displaced persons of the Ministry of Social Policy instead of the Migration Service data. This is stated in the explanatory note to the bill No. 14000 for the second reading, Ukrainian News Agency reports.
"Based on the results of the finalization of the bill, taking into account paragraph 1.2 of the Budget Conclusions, the horizontal equalization of tax capacity for regional budgets and local government budgets has been clarified: the current population according to the State Statistics Service of Ukraine as of January 1, 2022 and the number of registered internally displaced persons according to the Ministry of Social Policy, Family and Unity of Ukraine as of October 1, 2025 were taken into account," the document states.
It is noted that the calculation was made taking into account the following parameters: the current population according to the State Statistics Service as of January 1, 2022 - 32 million people; the number of registered internally displaced persons according to the Ministry of Social Policy as of October 1, 2025 - 3.6 million people.
The note notes that the amount of additional subsidies from the state budget to local budgets for the exercise of powers of local government bodies in the deoccupied, temporarily occupied and other territories of Ukraine that have been negatively affected by russia's full-scale armed aggression, based on the results of finalizing the bill, is UAH 30.9 billion, part of which is distributed among local budgets in the amount of UAH 13.7 billion.
Including, UAH 4 billion are provided for local budgets in order to equalize the disparities in the revenue part of the general fund of local budgets, which arose due to the use in the calculation of the horizontal equalization indicators of the tax capacity of local budgets for 2026 of the number of the current population according to the data of the State Statistics Service as of January 01, 2022 in comparison with the calculation of the horizontal equalization indicators, carried out taking into account the number of persons who declared/registered their place of residence based on the data of the State Migration Service as of October 01, 2025, and determined as the difference between the corresponding estimated volumes of reverse/base subsidies for 2026, taking into account the relevant features.
It is noted that in general, the volume of inter-budgetary transfers from the state budget to local budgets has been reduced by UAH 2.2 billion.
As Ukrainian News Agency earlier reported, on November 5, the Cabinet of Ministers approved the draft state budget for 2026 for the 2nd reading. Compared to the first reading, the revenues of the state budget for 2026 were increased by UAH 27.8 billion, expenditures by UAH 33.6 billion, and the maximum deficit by UAH 5.8 billion.
According to the results of the finalization, the state budget revenues (excluding inter-budgetary transfers) were determined in the amount of UAH 2,854.3 billion, expenditures by UAH 4,837.4 billion, and the deficit by UAH 1,900 billion, which is 18.4% of GDP.
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