Local budgets to receive funds for "projects to restore Ukraine" – PM

The Cabinet of Ministers has ordered to allocate almost UAH 1.7 billion to local budgets for projects under the emergency credit program to restore the country.

This was announced by Prime Minister Denys Shmyhal via Facebook.

"The government this week made a number of decisions that contribute to the development of regions. Thus, local budgets will receive almost UAH 1.7 billion for the implementation of projects under the Emergency Credit Program for the Restoration of Ukraine," he said.

Read alsoFinance Ministry plans to set state budget deficit for 2022 at 3.5% of GDP – Deputy MinisterThe allocated funds, according to Shmyhal, must first of all be directed to improving social infrastructure and meeting the needs of internally displaced persons.

"We have also approved the procedure for crediting to local budgets a part of the excise tax on fuel produced in or imported to Ukraine. This is a 13.44% excise tax – this is an additional UAH 1.2 billion in the first 2.5 months of the year alone. Separately, local budgets will also receive a subvention for the development of sports infrastructure. This primarily concerns facilities intended for holding national and international competitions, as well as training camps for national teams. UAH 500 million has been laid down for the program," the prime minister explained.

Background

In April 2020, the Cabinet simplified the procedure and conditions for local budgets to receive subventions from the state budget for social and economic development, which should help local authorities combat coronavirus.

In June 2020, the general fund of local budgets received UAH 131.5 billion, which is 2.1%, or UAH 2.7 billion, more than in the same period last year.

On July 8, the Cabinet allocated almost UAH 1.7 billion in subventions from the state budget to local budgets toward the regions' socio-economic development.

In addition, in July 2020, Prime Minister Denys Shmyhal vowed a decade of "economic breakthrough", the National Bank increased international reserves to an eight-year high, and inflation returned to growth.