Public hearings on the budget for 2027 were held in Dnipro.
Public hearings were held in Dnipro regarding the draft budget and the city's economic and social development program for 2027. The city faces financial risks due to a lack of funds from the state budget, including an unexpected transfer of 4% of income tax revenue to communities and the possibility of withdrawing reverse subsidies.
On November 13, in Dnipro, a public hearing was held in the Zoom format regarding the draft budget and the city's economic and social development program for 2027. Deputy Mayor and Director of the Department of Economics, Finance, and City Budget, Volodymyr Miller, presented the draft budget, highlighting the financial risks facing the city.
According to the draft state budget for 2027, there is no provision for transferring 4% of personal income tax to local communities. For Dnipro, this could mean a loss of 930 million hryvnias, which were intended to partially compensate local communities for expenses due to the non-increase in heating tariffs for residents. Miller noted that the city is adhering to the agreements and directing these funds to the designated needs, however, the state has not been fulfilling its obligations in the budget formation for the second year in a row.
Another risk is the potential withdrawal of the reverse subsidy, which could result in the city losing 3.1 billion hryvnias. The city council had proposed to keep these funds in the community budget, specifically for servicing loans taken out to implement sustainability plans. Miller noted that the city had fulfilled a significant portion of its sustainability plans using its own funds and credit resources, and had been planning to use the reverse subsidy to service these obligations and complete projects.
Additionally, during budget formation, spending on personnel in municipal council bodies and municipal enterprises was reduced. This is due to increased salaries in the education and social sectors, for which, according to Miller, the state did not provide sufficient additional funding. He added that this is a "minimum budget," and the city already has very limited ability to further reduce spending. At the same time, protected spending items are planned to be funded in the future, with a focus on meeting the basic needs of the community.