Local budgets received more resources — but will they be enough for the needs of communities?
Local budgets of Ukraine in 2025 received UAH 491.0 billion in tax revenues — 13.4% more than in 2024. This is not just a statistic: this money finances teachers' salaries, the operation of hospitals, road repairs and local infrastructure, so changes in revenues will be felt by every community and every resident.
"Stable and responsible fulfillment of tax obligations by businesses is a key condition for the financial capacity of communities, financing social programs and infrastructure projects."
— Lesya Karnaukh, acting head of the State Tax Service
Where this money came from
- Personal income tax — UAH 300.3 billion (growth of 16.6%) — the largest source for local budgets.
- Single tax — UAH 76.4 billion (+10.5%).
- Property tax — UAH 58.3 billion (+16.1%).
- Excise on domestically produced excisable goods — UAH 1.9 billion (+13.7%).
- Environmental tax — UAH 1.6 billion (+7.3%).
- Tourist tax — UAH 359 million (+31.5%).
- Parking fees — UAH 205.3 million (+17.9%).
- Revenues from rent payments for subsoil use increased by UAH 8.5 million, which also strengthened communities' financial base.
What this means in practice
Growth in revenues gives local authorities more opportunities: from maintaining schools and kindergartens to renewing municipal equipment and local roads. However, increased income is not an automatic guarantee of quality services: decisions on spending priorities and transparency in the use of resources are crucial.
The economic environment and analysts note that part of the growth is linked to the recovery of business activity and improved tax administration. This is social proof: when businesses operate — communities receive more resources.
If the pace of revenues is maintained, local authorities will be able to plan medium-term infrastructure projects; if not — they will have to look for additional sources or revise priorities.
A question for communities and local authorities: how exactly should the additional funds be allocated to maximally improve the quality of life for every resident?
