Sienkevych’s office announced a bleak forecast for Mykolaiv’s budget for the coming years: «We must rely solely on our own revenue»

Screenshot from the broadcast of the Mykolaiv City Council session on 29 October

Mykolaiv has resumed medium-term budget forecasting, but calculations have shown that the local authority’s own revenue may not be sufficient to ensure its stable operation.

This was reported on 29 October during a session of the Mykolaiv City Council by the Director of the Finance Department, Vira Sviatelyk, whilst presenting the municipality’s budget forecast for 2027–2029, according to NikVesti.

«We have resumed forecasting for the next two years, and, unfortunately, this forecast has shown that the Mykolaiv municipality lacks sufficient funds to ensure the sustainable, high-quality operation of our municipality,» noted Vira Sviatelyk.

She reported to councillors that the forecast for the municipality’s revenue stands at 5.671 billion гривень in 2027, 6.266 billion hryvnias in 2028 and 6.876 billion hryvnias in 2029.

Vira Sviatelyk, Director of the Finance Department at Mykolaiv City Council. Screenshot from the session broadcast

According to Vira Sviatelyk, the forecast figures differ significantly from last year’s because the city no longer expects the military personal income tax to be returned to the local budget from 2027 onwards.

«Unfortunately, last year’s forecast — which was based on the Ministry of Finance’s guidelines stating that the military personal income tax would be returned to us from 2027 —has not materialised. And this year, there is not even a promise that it will be returned. Therefore, we must rely solely on our own revenue,» explained the director of the finance department.

The draft forecast itself lists the following among the spending priorities for 2027–2029: in particular, the fitting out of shelters in educational establishments, ensuring safe conditions for children, supporting the work of municipal healthcare facilities, the development of rehabilitation services and social support for vulnerable groups.

The budget forecast for 2027–2029 sets out the expected financial indicators for the medium term. These may be adjusted in the future depending on changes in the economic situation, legislation and the local authority’s actual revenue.

Earlier, during a meeting of the city council’s budget committee, Vira Sviatelyk reported that, for January–September 2026, Mykolaiv’s budget revenue fell short by 66 million hryvnias. Expenditure for this period was 82 per cent of the target.

Councillor Olena Kiseliova («European Solidarity») asked for an explanation of the expenditure on municipal utilities in the 2026 budget.

«I have a general question. This year’s budget was, in essence, drawn up as a budget for a bright future for municipal utilities. I would like to hear how effective this approach has been,» said the councillor.

Olena Kiselova. Screenshot from the broadcast of the Mykolaiv City Council session

Olena Kiselova requested information on the actual expenditure in 2026 for the maintenance of municipal enterprises, the city council’s executive bodies and municipal institutions, as well as forecast figures for the coming years. She also enquired specifically about funding for the construction and repair of shelters.

It was previously reported that the Mayor of Mykolaiv, Oleksandr Sienkevych, had instructed the chief administrators of budget funds to review their requirements by the end of the year and to forgo any funding they would not be able to use in time. However, none of the administrators declined the allocated resources.

It should be recalled that in early October, Mykolaiv requested, for the third time, 819.1 million hryvnias from the Verkhovna Rada and the Cabinet of Ministers to cover priority needs until the end of 2026.

The city requires the most funding for water supply and heating — 412.7 million hryvnias. A further 138.8 million hryvnias are required for salaries for staff at state-funded organisations, 106.3 million for utility bills and energy costs, and 96.7 million for passenger transport by electric vehicles.

According to the mayor, Oleksandr Sienkevych, the city reviewed its expenditure throughout the year, which enabled it to save around 481 million hryvnias. However, it was not possible to fully cover the community’s needs.

The financial situation was further affected by delays in budget payments by the Treasury. As of 12 October, according to city authorities, bills totalling over 370 million hryvnias remained unpaid. The delays concerned, in particular, payments for completed construction work and payments to municipal utilities.

See also the «NikVesti» article: «Money is running out, payments are being delayed. What’s happening with Mykolaiv’s budget?»