According to public information, in the first half of 2023, municipalities of the Kherson oblast raised a total of UAH 1.144 billion in tax and non-tax revenues and income from capital transactions for local budgets. This is down by 32.9% compared to the corresponding period of 2022. This was stated by Ivanna Kuz, Adviser on Local Finance and Municipal Services of the Regional Office of U-LEAD with Europe in the Kherson Oblast.
Furthermore, local budgets received UAH 1.139 billion in taxes, which is 38.5% less than in the first half of 2022. Non-tax revenues amounted to UAH 3.9 million, which is an 86.8% decrease.
“This decrease in non-tax revenues generated by income from property and business activities, administrative fees and payments, income from non-profit activities and other revenues, is due to the occupation, lack of proper conditions for work and constant shelling. Local businesses have mostly relocated, and those that remain are facing extreme challenges. Moreover, the general economic situation is negatively affected by the evacuation of people from the municipalities to other, safer regions of Ukraine,” said Ivanna Kuz.
However, some municipalities show an upward trend in the meeting of the local budget targets. For example, there is an increase of 69.5% or UAH 2.3 million in tax revenues in the settlement municipality of Kochubeivka. The U-LEAD expert explains this by the increase in personal income tax revenues. As for non-tax revenues, there was a 13.5% increase compared to the corresponding period last year, which was achieved through revenues from administrative fines and other sanctions.
A significant increase in tax revenues was achieved by the budget of the Chornobaivka settlement municipality as well. The increase in tax revenues compared to the corresponding period of 2022 amounted to 145.8% or UAH 44.5 million. This increase in income is also associated with an increase in personal income tax, monetary rewards and other payments paid by tax agents, which for 6 months of 2023 amounted to UAH 68 million, showing an increase of UAH 51 million compared to the 6-month period of 2022.
“All other budgets of the municipalities of the Kherson oblast are experiencing a decline in both tax and non-tax revenues. At the same time, municipalities work hard to implement local budgets, participating in training programmes and consultations offered by the U-LEAD Programme. They receive ongoing support regarding changes in legislation, which greatly helps them in their daily performance in such difficult times,” said Oksana Siliukova, Head of the Regional Office of U-LEAD in the Kherson Oblast.