From 1 January 2025 onwards nominal amounts of subventions from the state budget for LGUs have been significantly diminished. However this drop doesn't mean a reduction of local budgets, but it's a result of total change of principles for financing local accounts. A traditional general subvention has been limited, and therefore it plays only a role of supplementing financial needs of local government units. That subvention drop was compensated by admitting for LGUs significantly greater and more stable shares in local PIT and CIT taxes.