Financial sector news

The Cabinet of Ministers of Ukraine has approved the distribution of additional subsidies for local budgets in de-occupied, frontline, and other territories affected by military aggression.

The government's decision removes restrictions on the use of additional subsidies for frontline communities, allowing funds to be directed to priority expenditures in accordance with current needs. The approved distribution makes it possible to even out financial imbalances in local budgets, ensure stable salary payments in the budgetary sphere, and compensate for community income losses caused by military actions.

The government's decision provides for the following distribution of subsidy funds:

• UAH 263.1 million - for the regional budgets of Donetsk and Luhansk regions and 80 communities as compensation for personal income tax losses;
  
  
• UAH 1,098.7 million - for 220 communities that have seen a decrease in revenues from property tax, land tax, and single tax;
  
  
• UAH 85.5 million - compensation for income tax losses for the regional budgets of Donetsk, Kirovohrad, Odesa, and Sumy regions;
  
  
• UAH 109.1 million - to prevent wage arrears to employees of budgetary institutions.