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War Economy Shifts Local Revenues Toward Western Ukraine

Ukraine Local Budget Receipts Climb 17 Percent in First Half

(KYIV, UKRAINE) – Total receipts to the general fund of Ukraine’s local budgets reached UAH 287.7 billion in the first six months of 2026, marking an increase of 17 percent compared to the same period last year. This represents a rise of UAH 41.9 billion, which equates to approximately USD 1.07 billion or GBP 835 million at current rates.

The figures were released by the Ministry of Finance of Ukraine. Personal income tax remained the largest single source of revenue, generating UAH 166.2 billion. A further UAH 42.1 billion came from the single tax, while land payments contributed UAH 24 billion. Excise tax receipts stood at UAH 20.6 billion, followed by UAH 17.4 billion from private sector corporate profit tax. Real estate tax added UAH 6.1 billion to local coffers.

The fastest revenue growth was recorded in the western and central regions. Zakarpattia region saw a 26.6 percent increase, while Volyn rose by 26.4 percent. Kyiv region posted 25.5 percent growth, Ivano Frankivsk recorded 25.0 percent, and Lviv region climbed 23 percent. Rivne grew by 22.8 percent, Chernivtsi by 22.4 percent, Ternopil by 21.6 percent, Zhytomyr by 21.5 percent, and Vinnytsia by 21.4 percent.

Finance ministry officials attributed the gains in these areas partly to the relocation of internally displaced persons and businesses from territories where hostilities are active or that remain under temporary Russian occupation. The lowest revenue figures were recorded in Donetsk, Zaporizhzhia and Luhansk regions, reflecting the severe disruption caused by the war.

The ministry said the overall increase of 17 percent was made possible by the rapid adaptation of enterprises, state bodies and local government structures to the conditions of martial law. These additional resources allow communities to fund their most pressing local needs.

In a separate measure of state support, the Ministry of Finance transferred UAH 38.5 billion in subsidies from the state budget to the general fund of local budgets during June 2026. As of 1 July 2026, the total cash balances held on accounts by local budgets and budgetary institutions, across both general and special funds, stood at UAH 131.4 billion.

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