The reform of Local Governmentwas carried out in order to reduce the dependence of the Municipalities on the state, however, all the numbers show that, with the implementation of the reform, not only did the dependence not decrease, but it increased and no one seems to realize it or at least want to admit it.
Following previous reports by "F" regarding the reform, today we present the revenues of each Municipality in 2025. The revelation of the case is that, according to the data we obtained, the percentage of state sponsorship on the revenues of the Municipalities, instead of decreasing, has increased and even by many points.
An important element is also the fact that this distortion does not seem to be corrected, as the claims of the Municipalities for increases in state sponsorship also imply an increase in the percentage, and therefore an increase in the dependence of the Municipalities on the state.
So far, no number seems to justify or agree with the promises of the parties and the Parliament when it decided on the reform, with the bill continuing to increase year by year for the state.
Something similar is happening with the fees of the local authorities, as they have also increased.
Essentially, so far the numbers show an increase in municipal taxes and increases in the dependence of Municipalities on the state through state sponsorship.
The numbers are typical of what is really happening around the reform of Local Government, as, so far, the bill is rising for everyone, for taxpayers and for citizens.
38% of the proceeds are sponsored
The most typical example of all is the data concerning the total revenues of the municipalities and the percentage of sponsorship on these revenues, which on average for all 20 Municipalities reaches 38%, as shown in the table.
In fact, this percentage appears both in the approved budgets of 2025 – 2026, and in the forecasts of the Municipalities for the years 2027 – 2028. The paradox of the case is not only that 4 out of 10 euros from the revenues of each Municipality is a state sponsorship, but the fact that before the implementation of the reform the percentage of the sponsorship on the revenues of the Municipalities was close to 29%. So, essentially with the changes that were decided and implemented, this dependence not only did not decrease but even increased by about 9%.
It should be noted that according to the forecasts of the Municipalities, in 2026 this dependence reaches 38.55% and falls close to 37% in 2027 and 2028, based on the initial agreement for 144 million per year. However, these forecasts do not seem to count the new requests of the Municipalities for increased state sponsorship, which, as is logical, will skyrocket this amount.
The average of 38% does not fully reflect what really unjustifiably seems to be happening after the reform, as some Municipalities are over-dependent on state sponsorship with sponsorship even exceeding 60% of their revenues and while, as we have mentioned many times, the purpose of creating new Municipalities and the reform was exactly the opposite.
Apologies for the auto-translation. The original Greek version is also shown below:
Which are the municipalities most dependent on the state?
Based on the data, the municipalities that are most dependent on the state are:
◗ Municipality of Lefkara: 67.50% of its revenue is state sponsorship
◗ Municipality of South Nicosia – Idalion: 56.97% of their income is state sponsorship
◗ Municipality of Athienou: 51.07% of their income is state sponsorship
Of course, there are other Municipalities that exceed 40%, such as Latsia - Geri, Aradippou, Polemidia and Dromolaxia - Meneou.
In contrast, the Municipalities with the smallest seem to be Paphos and Limassol, with 24.26% and 24.84% respectively.
Which are the municipalities most dependent on the state?
Based on the data, the municipalities that are most dependent on the state are:
◗ Municipality of Lefkara: 67.50% of its revenue is state sponsorship
◗ Municipality of South Nicosia – Idalion: 56.97% of their income is state sponsorship
◗ Municipality of Athienou: 51.07% of their income is state sponsorship
Of course, there are other Municipalities that exceed 40%, such as Latsia - Geri, Aradippou, Polemidia and Dromolaxia - Meneou.
In contrast, the Municipalities with the smallest seem to be Paphos and Limassol, with 24.26% and 24.84% respectively.
