From €70.9 million The Local Government reform that will be implemented from July 1st will raise it to €92.9 million.
With the reform of Local Government, the number of municipalities will be reduced to 20 from 30 today, but the state grant is increased by €22 million. while for 2025 it is expected to increase further and reach €117 million.
It is worth noting that in the first half of 2024, the state grant that the 30 municipalities will receive amounts to €35.4 million. €8.7 million concerns the sponsorship against the abolition of business tax, while an amount of €1.09 million. concerns funds vis-à-vis the Diapylia, which have been abolished decades ago. From July to December, the 20 municipalities established by the reform will receive a total amount of €58.8 million.
By criteria
It is worth noting that the grants will be distributed to the new municipalities on the basis of specific criteria, which will be related to population, population density, area, per capita income that the municipality has from its citizens, etc. The Ministry of Interior estimates that the new distribution of state funding to municipalities will bring about fiscal balance, as it will be based on the needs of each local authority.
How much will each municipality get?
In detail, the total grant of €58.5 million. It will be distributed among the 29 municipalities as follows:
– Nicosia Municipality will receive a state grant of €9 million, Limassol €8.1 million, Strovolos €4.9 million, Larnaka €4.8 million, Lakatamia €3.1 million, Paphos €2.8 million, Paralimni-Deryneia €2.58 million, East Limassol €2.54 million, Latsia Geri €2.26 million, West Limassol €2.24 million, Ayia Napa €2.1 million, Aradippou Municipality €1.8 million. South Nicosia-Idaliou €1.8 million, Dromoloxia-Meneou €1.6 million, East Paphos €1.4 million, Polis Chrysochous €1.24 million, Athienou €1.13 million, Akamas €1.15 million and Lefkara €1 million.
