General fund revenues of local budgets, excluding transfers, totaled UAH 44.7 billion in September 2026 \u2014 up 25.6% compared to September 2025, against annual inflation of 10%. At the same time, 254 communities recorded 3,902 attacks \u2014 a 64.6% increase year-on-year. <\/p>\n
This is according to the September issue of “Community Monitoring,” prepared by KSE Institute together with KSE University.<\/p>\n
Personal income tax remained the main source of local budget revenue: in September it brought in UAH 30.9 billion, or 69.1% of revenue excluding transfers. This is 20.1% more than a year earlier, driven primarily by wage growth. According to Work.ua, the average salary rose 18.4% over the year \u2014 from UAH 25,500 to UAH 30,200. Land fees generated UAH 4.4 billion (+8.2%), excise tax brought in UAH 3.3 billion (-2.8%), and the single tax yielded UAH 3.2 billion (+8.4%). Real estate tax revenue rose 34.5% to UAH 1.1 billion. Only three regions saw revenue growth exceeding the national average. <\/p>\n
Transfers to local budgets in September increased 3.6 times compared to last year. The education subvention amounted to UAH 14.4 billion (+69.8%), driven by higher teacher salaries. An additional UAH 1.4 billion in supplementary grants was distributed to territories affected by the war. The base subsidy, totaling UAH 2.6 billion, went to 999 local budgets. At the same time, 207 budgets transferred UAH 1.6 billion in reverse subsidy to the state budget (+23.9%). Due to a shortage of funds on the single treasury account, payments to municipal enterprises and settlements for civil protection goods and equipment were delayed. <\/p>\n
The draft 2027 budget allocates UAH 1.06 trillion to local budgets \u2014 20.9% more than in 2025. At the same time, the share of personal income tax retained by communities is proposed to be reduced from 64% to 60%, with the difference offset by a targeted subvention for tariff gaps. The government has updated the State Regional Development Strategy: 215 communities have been designated recovery territories, 208 as territories with low socioeconomic development, 85 as mountainous, and 199 as steppe territories. In 2027, authorities plan to begin streamlining state support programs according to these territory types. A bill passed in its first reading will allow local councils to operate under martial law provided at least half of their deputies are present. <\/p>\n
Since September 1, teachers’ base salaries have risen by another 20%, following a 30% increase in January. The procedure for calculating salaries is also changing. The state subvention does not cover teacher salaries in schools with fewer than 60, 55, or 45 students, depending on the school type. Free meals have been extended to all students in grades 1\u201311(12), requiring communities to allocate additional funds and organizational solutions to provide meals for a larger number of students. The government has also updated the rules for preparing public investments and procurement. More than UAH 368 million in state support is planned for barrier-free routes, but communities must finance between 50% and 80% of the cost. <\/p>\n
In September, 3,902 attacks on communities were recorded \u2014 4.8% fewer than in August, but 64.6% more than a year earlier. There were 934 instances of damage to civilian infrastructure (+78.9% year-on-year). Housing was hit hardest, with 671 cases of damage, or 71.8% of the total. There were also 145 cases of damage to energy infrastructure, 77 to educational facilities, and 41 to medical facilities; for schools and medical facilities, this represents increases of 26.2% and 17.1%, respectively, compared to August. In non-frontline communities, the number of strikes rose 65.9% to 297, and in Kyiv region it more than tripled to 76. In Kyiv, the number of attacks rose from 47 to 117 over the month. According to estimates from various sources, air raid alerts in the capital lasted a total of 242 hours and 40 minutes, while in Sumy region they lasted approximately 577 hours. <\/p>\n
In September, 12 international agreements were registered, seven of which concerned partnerships between Bukovyna communities and Romanian municipalities. Cooperation covers education, healthcare, the local economy, transport, and the environment. New agreements with Catalonia and Moldova also create opportunities for joint projects, although no confirmed funding has been secured yet. <\/p>\n
Inter-municipal cooperation remains an important way to deliver services and address resource shortages in communities. In September, seven agreements were added to the register: four concerned urban planning and architecture, two concerned social services, and one established a shared labor archive for five communities. Such agreements allow communities to delegate specific tasks to partners, pool resources, and ensure residents receive the services they need. <\/p>\n