Last year’s local budget revenue plan was exceeded by 6.4%
7 January 15:42
In 2024, the revenues of the general fund of local budgets (excluding intergovernmental transfers) amounted to UAH 451 billion, which is 2.1% or UAH 9.1 billion more than in the same period in 2023. This was announced by Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, citing data from the Ministry of Finance, Komersant ukrainskyi reports.
At the same time, according to him, in comparable figures (excluding military personal income tax, which until October last year was credited to local budgets), revenues increased by 24.1% or UAH 87.6 billion.
Moreover, as the MP emphasized, revenues grew in all regions except Luhansk region. The highest growth rates of revenues are demonstrated by the city of Kyiv – plus 36.8%, Mykolaiv region – plus 29.5%, Zakarpattia region – plus 27.5%, and Kyiv region – plus 27.2%.
Danylo Hetmantsev also said that interbudgetary transfers amounting to UAH 193.3 billion were transferred from the state budget to local budgets, which is 5.2% or UAH 9.5 billion more than in the same period of 2023.
Thus, the MP summarizes, in 2024, the annual plan for general fund revenues was fulfilled by 106.4% or plus UAH 27.1 billion. The largest overfulfillment of the plan was recorded for the corporate income tax – plus 126%, the single tax, real estate tax, and excise taxes.
What difficulties did local budgets face?
Just like at the central level, the past year was just as difficult for local budgets. According to Danylo Hetmantsev, due to the transfer of the “military” personal income tax, local budget revenues in some regions, especially those closer to the front line, such as Donetsk region, fell significantly more than the average for Ukraine.
However, such lost revenues were partially compensated by an additional subsidy for the exercise of powers of local governments in the de-occupied, temporarily occupied and other territories of Ukraine that were negatively affected by Russia’s full-scale armed aggression, as well as by the retention of an additional 4 percentage points from the PIT split.
“Of course, the situation with the budgets of the ATCs is different, but in general their financial condition remains stable, and some budgets, for example, like in Kyiv, which also received their share of the split from the tax on excess profits of banks, were able to significantly improve their situation,” the MP states.
According to him, one of the evidences of this is the growing balances on the accounts of local budgets, which a month ago crossed the UAH 190 billion mark.
