Mykolaiv's budget to be increased by 783 million: where will the money come from?

It is proposed to increase the Mykolaiv community’s budget revenues by 783.1 million hryvnias. Almost 408.5 million hryvnias, or more than half of this amount, are funds from the state and other local budgets. This is stated in the explanatory note to the draft amendments to the 2026 budget. Data on the performance of the revenue side is confirmed by the official report of the Department of Finance of the Mykolaiv City Council as of 1 August 2026. For now, this is only a draft. The final decision must be adopted by the city council deputies.

The increase in the revenue side consists of three main sources:

• 357.7 million hryvnias — additional own revenues of the general fund;
• 17 million hryvnias — proceeds from the sale of communal property;
• 408.5 million hryvnias — subventions and subsidies from the state and other local budgets.

Due to rounding of individual indicators, their sum may slightly differ from the total volume of changes.

During January–July 2026, the general fund, excluding transfers, received 3.36 billion hryvnias. The plan for this period was met at 110.6%. Actual receipts were almost 322 million hryvnias higher than expected. The special fund, excluding transfers and own receipts of budgetary institutions, received 44.3 million hryvnias — approximately 180% of the annual plan. In particular, from the sale of communal property the city received 36.6 million hryvnias against an annual plan of 19 million. The overperformance is 17.6 million hryvnias.

The plan for personal income tax receipts is proposed to be increased by 340.1 million hryvnias.

Of these:

• 322.4 million hryvnias — PIT from annual income declarations;
• 17.2 million hryvnias — tax on other personal income;
• 430 thousand hryvnias — PIT from incomes of specialists of a Diia.City resident.

Additional receipts are also expected from:

• profit tax of communal enterprises — 3 million hryvnias;
• licenses to organize gambling — 3.04 million hryvnias;
• rental of communal property — 1 million hryvnias;
• land payments and other revenues.

The net increase in transfers will amount to 408.5 million hryvnias. Among the largest receipts and adjustments:

• 66.96 million hryvnias — equipping shelters in educational institutions;
• 57.54 million hryvnias — equipment and modernization of school catering facilities;
• 11.55 million hryvnias — additional educational subvention;
• 5.69 million hryvnias — the “New Ukrainian School” program;
• 9.34 million hryvnias — improvement of hot meals and meals for primary school pupils;
• 102.03 million hryvnias — additional subsidy;
• 65.77 million hryvnias — meals for pupils of general secondary education institutions;
• 83.01 million hryvnias — housing compensations for certain categories of veterans and people with disabilities due to the war;
• 5.37 million hryvnias — creation of temporary and supported housing funds for evacuees and displaced persons;
• 4.32 million hryvnias — execution of delegated expenditures in the field of education.

Most subventions are earmarked, so the city cannot freely spend them on other needs.

Separately, the draft provides for doubling the budget reserve fund — from 50 to 100 million hryvnias. The provided materials do not detail which specific possible needs the additional 50 million are planned to be used for.

Background

The initial Mykolaiv budget for 2026 was adopted by deputies on 30 December 2025. At that time, revenues were set at 5.546 billion hryvnias, expenditures at 5.275 billion hryvnias, and the reserve fund amounted to 50 million hryvnias.

City authorities called this estimate the “survival budget”, since own resources were insufficient for all priority needs. After several adjustments, on 6 August 2026 budget revenues already amounted to 6.694 billion hryvnias, and expenditures to 7.009 billion hryvnias.

That same day the city council appealed to the Verkhovna Rada and the Cabinet of Ministers requesting at least 1.18 billion hryvnias in additional subsidy. According to the city’s calculations, that was the amount missing for salaries of public sector workers, utilities, meals, concessionary travel, drinking water and stable operation of heat supply.

The currently proposed increase of 783.1 million hryvnias does not mean the city received the entire requested subsidy. A significant portion of the new funds are targeted subventions that can be used only for specified directions.

Earlier we wrote:

• Authorities warn of a “shutdown”: Mykolaiv officials said funds may run out as early as November
• “Survival budget”: Mykolaiv adopted the 2026 budget with a one-billion deficit
• Mykolaiv asks for help: the city is critically short of over one billion hryvnias
• “There won’t be enough money even for salaries”: Senkevych urged to justify every capital expenditure
• “From 1 September there’s no money for salaries”: Topchiy warned about the situation in cultural institutions