War and recovery budget: where Odesa region spent 7 billion in 2025

Odesa region finished 2025 with a budget of almost UAH 7 billion, which was spent on education, healthcare, defense, social support, and infrastructure restoration. Despite the war, the region exceeded some of its financial targets and invested hundreds of millions in hospitals, shelters, school transportation, and security projects.

TheCenter for Public Investigations analyzed how the funds of the Odesa regional budget were used.

The Odesa Regional Council considered a draft decision on approving the report on budget execution for 2025. The document reflects the financial activity of the region during the war, when it was necessary to simultaneously meet the needs of defense, social sphere, education, medicine and maintain critical infrastructure.

At the end of the year, the regional budget revenues amounted to UAH 6 billion 898.1 million. Of this amount, more than UAH 4.53 billion was transferred to the general and special funds as the region's own revenues, about UAH 1.98 billion was received from the state budget in the form of transfers, and another UAH 384.7 million was received from other local budgets. Compared to the previous year, revenues grew mainly due to an increase in tax payments.

Personal income tax remained the most important source of revenue. Over the year, it brought in over UAH 3.21 billion to the budget, accounting for more than two-thirds of its own revenues. Although the target was about UAH 10 million short of the target, the growth rate was 114.1%. This growth is attributed to higher official salaries and the continued operation of some businesses even during the war.

Revenues from licenses for retail trade in alcohol and tobacco products also exceeded the planned figures by 12.4%, and from wholesale trade by 1.8%. Revenues from environmental tax were also better than forecast, while rent payments did not reach the expected level.

Regional budget expenditures amounted to UAH 6 billion 946.9 million. Almost 43% of all expenditures were made on protected items, such as salaries, utilities, medicines, food, and social payments. This indicates that a significant portion of the funds was used to support the basic functioning of the social sphere.

The education sector received the largest amount of funding - over UAH 2 billion, or almost a third of all expenditures. The funds were allocated to pay salaries to education workers, maintain institutions and develop infrastructure. Separately, more than UAH 64 million was spent on the purchase of 27 school buses.

The region allocated almost UAH 700 million for the healthcare system. The funding supported the operation of hospitals and the purchase of modern medical equipment, including diagnostic systems, anesthesia and resuscitation equipment, equipment for operating rooms, laboratories and sterilization departments. Part of the funds was allocated to support medical institutions that are working with an increased workload due to the war.

Significant resources were also allocated for security and defense needs. More than UAH 400 million from the local budget was allocated to support the defense forces, military formations, and the development of security infrastructure. Separate funding was allocated for civil defense measures, fortifications, repairs of critical infrastructure, and support for border areas.

The budget funds were also used to repair and modernize hospitals, social institutions, and protective structures. Funding covered the construction of shelters, increasing the energy resilience of facilities, upgrading security systems, and reconstructing infrastructure. The region allocated over UAH 13.3 million for environmental protection measures.

Government subventions played an important role in financing the region. They were used to offset utility costs, support educational programs and school meals, provide housing for family-type orphanages, modernize vocational education, purchase school buses, and create safe learning environments.

Projects in the areas of defense, security, civil protection, education, healthcare, and economic development received the largest amounts of funding among regional programs. Funds were also allocated to support youth initiatives, international cooperation, and the restoration of territorial communities.

In March, the Center for Public Investigations investigated whether support for the TROs remained stable or was gradually decreasing over time. According to the study, the number of communities in Odesa Oblast that financed territorial defense measures decreased to 46, or 50.5% of the total number of communities.

Анна Бальчінос