Authors: Yanina Kazyuk, financial decentralisation coordinator, and Svitlana Demydenko, expert of the Financial Monitoring Group of the Central Reform Office under MinRegion (with the support of the U-LEAD with Europe Programme).

In accordance with Article 103-⁶ of the Budget Code of Ukraine, an additional subsidy for execution of expenditures transferred from the state budget to maintain educational and healthcare facilities (hereinafter referred to as additional subsidy) is directed at:

1. expenditures of educational institutions, stipulated in part I of Article103-² of this Code (except for labour payment costs with accrual of teaching personnel of educational establishments, determined by point 1-6 of part I of Article 103-² of this Code, as well as educational institutions, determined by points 7 and 8 of part I of Article 103-² of this Code, in terms of obtaining full secondary education);
2. expenditures of healthcare institutions, stipulated in point 3 of part I of Article 89 and in point 3 of part I of Article 90 of this Code, for the payment of communal services and energy supply.

Therefore, an additional subsidy is directed at those expenditures of secondary education and healthcare not funded by educational and healthcare subventions, namely: current expenditures on secondary education, including salaries of non-teaching staff, and payment of energy supply in healthcare.

It should be noted that such spending powers in accordance with Articles 89, 90 of the Budget Code of Ukraine are assigned to oblast, rayon budgets, budgets of cities of oblast significance and amalgamated hromadas.

The allocation of additional subsidies between the respective local budgets in the oblasts should be in accordance with the procedure established by the oblast state administrations and approved by the decision on the oblast budget (Part 5 of Article 103-⁶ of the Budget Code of Ukraine).

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