Order No. 618-r defines the mechanism and volumes for the allocation of additional subsidies from the state budget to local budgets to support territories affected by the armed aggression of the Russian Federation. The funds are directed toward ensuring the exercise of powers by local self-government bodies in de-occupied, temporarily occupied, and other territories that have suffered negative impacts from the war. The total amount of the subsidy exceeds 6.6 billion hryvnias, which have been distributed among the regional budgets of Ukraine.
The structure of the act consists of three items and an annex. Item 1 approves the actual allocation of funds in accordance with the Budget Code and Cabinet of Ministers of Ukraine Resolution No. 80. Item 2 imposes an obligation on regional state (military) administrations to ensure the targeted use of funds, in particular for the payment of salaries to educators and social sector workers, as well as to conduct an analysis of expenditure efficiency. Item 3 instructs the Ministry of Finance to make technical amendments to the state budget schedule. As this order is an act of current budget regulation, it does not amend the provisions of laws but only implements them within the 2026 budget period.
The most important provisions for practical application are:
1. **Targeted Purpose:** Funds must be used primarily for the remuneration of pedagogical and scientific-pedagogical staff, as well as employees of social and rehabilitation service providers.
2. **Control Function:** Regional administrations are obligated not only to allocate the funds but also to conduct a comprehensive analysis of payroll expenditures and the optimization of the network of budgetary institutions.
3. **Reporting:** A clear deadline is established — by November 30, 2026, regional administrations must submit a report to the Ministry of Finance on the use of the subsidy and the implementation of expenditure optimization measures.
4. **Prohibition of Arrears:** It is a direct duty of the administrations to prevent the emergence of accounts payable regarding salary payments.
