Amendments to the Budget Code on the redistribution of the expenses of local budgets in the temporarily occupied territories of Donbas, which were passed by the parliament, could allow the government to allocate funds as subventions from the national budget to the budgets of Donetsk and Luhansk regions, MP Maksym Yefymov (Petro Poroshenko Bloc) has said.

"Starting from July 2014, the treasury servicing of expenses of the budgets in the territories that are not under control of Ukrainian authorities has been suspended. Around UAH 2.5 billion has been frozen, and large inflation "eats" at them, while the region needs the money. This initiative would allow the cabinet to send these funds in the form of subventions from the national budget to the relevant regional budgets of Donetsk and Luhansk regions," the press service of Petro Poroshenko Bloc Solidarity reported, citing Yefymov.

He said that around 700,000 people have moved to the Ukraine-controlled territories in these two regions, where they face a lack of housing, and kindergartens, schools and hospitals are overcrowded.

"Due to the loss this year Donetsk region falls short of over UAH 2 billion," he said.

He said that thanks to subventions of UAH 2.5 billion internally displaced persons could have their lives improved without using national budget funds.