MPs refuse to repair roads next year
16 October 2024 09:39
The working group on the development of the State Budget-2025 removed the provisions on the return of funding for the Road Fund from the draft law. This was announced by the People’s Deputy of Ukraine Yaroslav Zheleznyak, reports "Komersant Ukrainian"
“Now the working group on the budget has supported the amendment of Podlasa-Zaburanna to remove the return of the Road Fund from the Budget 2025. Thus, all the money from the excise tax goes to the army,”
– the MP wrote on Telegram.
As 
previously reported, the draft State Budget of Ukraine for 2025 initially included guaranteed revenues to the State Road Fund. 25% of the revenues from the excise tax on fuel and vehicles were to be used for road construction.
In 2024, the state did not build any roads – all the money from the Road Fund was transferred to the general fund of the State Budget.
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The Road Fund
The State Road Fund is a special-purpose fund within the special fund of the State Budget of Ukraine created to accumulate funds for the construction, reconstruction, repair and maintenance of roads of national and local importance. Its creation was driven by chronic underfunding of the road sector in Ukraine, which resulted in 95% of roads being in poor condition. The Fund was established on 17 November 2016 after the Verkhovna Rada adopted three necessary laws.
The main sources of the Road Fund are the excise tax on fuel and vehicles produced and imported, import duties on petroleum products and vehicles, tolls for heavy vehicles, and a portion of the proceeds from fines for traffic violations. The fund is used to finance the construction, reconstruction, repair and maintenance of public roads of national and local importance, design and survey work, road safety, and debt repayment on borrowings for the development of the road network.
Since its inception, the fund has been growing steadily: while in 2018 it was UAH 32.6 billion, in 2019 it was already UAH 50.4 billion, and in 2020 it was UAH 69.7 billion. This allowed us to significantly increase the volume of road repairs and construction in Ukraine. It was decided to allocate all the funds of the road fund for 2024 (UAH 94.7 billion) to the general fund of the state budget to strengthen the army and enhance defence.
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