State grant to municipalities to rise by €39m as stoppage goes ahead

Local financegovernmentprotestTop News State grant to municipalities to rise by €39m as stoppage goes ahead Apergia Dimoi 1536x1152 Relevant News Limassol mayor: “We want funding, not privileges” 3 August 2026 State grant to municipalities to rise by €39m as stoppage goes ahead 3 August 2026 Property valuers group says online estimates can’t replace a surveyor 3 August 2026 Vassos Vassiliou 3 August 2026 FacebookXWhatsAppEmailPrintViber Interior Minister Konstantinos Ioannou rushed to seek Finance Minister Makis Keravnos’s agreement on a revised increase to the state grant paid to municipalities, in a bid to head off industrial action the municipalities had threatened if the government failed to raise the funding. The move came too late. Despite the improved proposal, municipal employees held a three-hour work stoppage today between 9am and noon, with consultations now expected to follow in an effort to resolve the dispute. The letter setting out the proposal, dated July 31, 2026, and marked “urgent,” amounts to what appears to have been a last-ditch effort to salvage the situation. Municipalities have described the revised proposal as a positive step, though they say it still falls short of ensuring their smooth operation. The letter, titled “Revision of the amount of the annual state grant to municipalities,” sets out an analysis showing the grant rising from its current €117 million to €156,118,892 next year. The ministry’s original proposal had envisaged an increase to €147,888,000. The calculation is set out as follows: Implementation stageCalculation50% of the cumulative increase in net primary spending for 2024 (2.7%), 2025 (6%) and 2026 (5%)6.85%Applying the above increase to the €117 million figure€8,014,500€117 million + 2024-2026 increase€125,014,500Loss of revenue from the licensing sector€12,000,000Responsibility for maintaining roads of primary importance€15,000,000New base€152,014,50050% of the increase in net primary spending for 2027 (5.4%)2.7%Applying the above increase to the resulting amount – final grant for 2027€156,118,892 The minister informed Vyras of new details that emerged following further consultation with the Finance Minister on the method for calculating the state grant to municipalities for 2027. Ioannou also set out the following regarding the revised proposal: First, the increase corresponding to 50% of the cumulative change in net primary spending for 2024, 2025 and 2026, as set out in the Medium-Term Fiscal Structural Policy Plan, will be calculated. This increase will be applied to the €117 million state grant provided for under Article 94 of the Municipalities Law (Law 52(I)/2022). The resulting amount will then have added to it the €12 million grant to offset lost revenue from development licensing, and the €15 million grant for maintaining roads of primary importance. The increase corresponding to 50% of the change in net primary spending for 2027, as set out in the Medium-Term Fiscal Structural Policy Plan, will then be applied to the resulting total amount. The minister informed Vyras that the increase in the state grant will be paid for the first time in 2027, and thereafter every three years, based on the cumulative percentage arising during the period in question, as set out in detail in his previous letters. The minister concluded by asking for the agreement of the Union of Municipalities, saying he hoped this would constitute the final resolution of the matter so that the relevant legislative arrangements could be advanced as quickly as possible. Subscribe to our Newsletter Latest News Limassol mayor: “We want funding, not privileges” Property valuers group says online estimates can’t replace a surveyor ALMA says WHO report is chance to fix GHS flaws Deputy mayor accuses Polis municipality of negligence over fires Rescuers search for 28 missing after ferry catches fire in Indonesia’s Madura island Leaked exams, dashed dreams: Why India’s ‘cockroach’ youth turned on Modi Record heatwave spreads across Korean peninsula, prompting emergency response Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world.