Kim warned that it would be a difficult year for Mykolaiv’s budget: «We will have to cut programmes and build up a reserve»

Vitalii Kim at the Forum of the Association of Frontline Cities and Communities. Photo from the Mykolaiv Regional State Administration’s page

Vitalii Kim, Head of the Mykolaiv Regional State Administration, stated that 2026 will be a very difficult year for the region from a financial perspective.

He made this remark during his speech at the city council session on 30 April, according to NikVesti.

According to him, throughout the four years of full-scale war, the authorities have been trying to organise their activities in such a way that the threat is felt as little as possible, despite the proximity to the front line. However, this year the economic situation is extremely critical.

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«In recent years, we have been doing our work in such a way that people do not feel threatened. That is how it should be. People should not know that work is being carried out somewhere; we are paid a salary for this. Only this year, hundreds of drones have been shot down. This year will be difficult both in terms of the budget and the conditions. We need to set aside all the funds for the restoration of critical infrastructure and defence. It will be difficult, I warn you. But we have managed to ensure that people feel at ease, as if we were not a frontline city. This year will be difficult. We are discussing matters that are not secondary, but they are not priorities. The situation could change overnight, when all the funds will be needed for critical matters, reconstruction and defence,» said Vitalii Kim.

In particular, he appealed to the council and Mayor Oleksandr Sienkevych to maximise budget savings, specifically by reviewing programmes and establishing a reserve fund:

«We need to save as much as possible, cut programmes, and have a reserve in the contingency fund».

Separately, the regional governor drew attention to changes in legislation regarding the co-financing of state projects. This concerns, in particular, the implementation of resilience plans. For frontline regions, they will request the minimum level of co-financing; however, according to Vitalii Kim, it will not be possible to avoid such expenditure.

«This is very difficult for the local budget. And the issues we are discussing will no longer be relevant. Survival and co-financing for state projects will be the priority this year. We are currently discussing ensuring that co-financing is at least 10% for frontline areas. But there will definitely be co-financing this year. And we need the money if we want major projects in the region and the city,» he added.

As is known, back in January, Mykolaiv Mayor Oleksandr Sienkevych stated that he would travel to Kyiv to advocate for the city’s need for a 1.1 billion hryvnias subsidy. He later explained that the Ministry of Finance would spend up to four months reviewing the state of the city budget to justify the need for additional funding from the state budget.

During a staff meeting on 2 March, Mykolaiv Mayor Oleksandr Sienkevych stated that the city’s 2026 budget lacks funds even for salaries and utility bills. Because of this, the question of which projects to fund first «will be a very pressing one».

There is a shortfall in Mykolaiv’s budget. What is known?

Mykolaiv City Council has appealed to the government and parliament to provide an additional grant from the state budget. According to the city’s calculations, its own budget revenue for 2026 covers only 82.5% of actual needs, and the financial shortfall exceeds 1.14 billion hryvnias.

In total, budget revenue for 2026 amounts to 5 billion 546 million hryvnias, whilst total budget expenditure stands at 5 billion 275 million 353 thousand 815 hryvnias.

Mykolaiv Mayor Oleksandr Sienkevych emphasised that the 2026 budget is effectively a survival budget and does not cover all the community’s needs. In particular, the Mykolaiv budget lacks funds for the pay rise for teachers initiated by the state.

Councillors also appealed to the Verkhovna Rada of Ukraine and the Cabinet of Ministers, demanding a pay rise for cultural workers. The document highlights the critically low level of pay in the cultural sector.

Instead, the government has raised the basic salary for cultural workers to 3,470 hryvnias. The Mykolaiv authorities have said they will look for funds in the budget to pay the supplements.

Apart from paying salaries, the city budget also lacks funds for routine and major road repairs, as stated by Mayor Oleksandr Sienkevych. For example, the municipal enterprise ELU Avtodorig has received around 80 million hryvnias less than allocated in the budget.