Cyprus's 2027 state budget provides €191 million for local government, with the largest share earmarked for municipalities and community councils in the government-controlled areas.
The Interior Ministry funding covers a wide range of expenditure, including state grants, road maintenance, revenue losses linked to development licensing, community service clusters and the salaries and pensions of current and former community leaders.
€117 million for municipalities
A total of €117 million will go to the 20 municipalities in the government-controlled areas, which now incorporate 63 communities.
The state grant is distributed according to specific criteria, with particular weight given to population. Other criteria include population and residential density, revenue and whether municipalities include mountainous, remote or semi-occupied areas.
€5.3 million for displaced local authorities
Another €5.3 million will fund municipalities, councils, communities and associations of communities in the occupied areas, covering operating and other expenses.
An additional €105,000 is earmarked for the three District Associations of Occupied Communities.
€18.5 million for community councils
The budget allocates €18.5 million to community councils in the government-controlled areas, including:
- €18 million for community councils and the Union of Cyprus Communities.
- €200,000 for community council events and other activities.
- €100,000 for District Associations of Communities.
- €160,000 to cover services provided by Pyla Community Council to Turkish Cypriot residents, who receive electricity and water free of charge.
- €20,000 towards the annual cost of the water supply in Alassa, based on Electricity Authority of Cyprus bills.
- €20,000 for conferences, meetings and events on local government issues organised by the Union of Cyprus Communities, subject to receipts.
€3 million for community service clusters
A further €3 million will go to the Community Service Clusters.
The grant covers the salaries of additional employees across the 30 Community Service Clusters, in accordance with a Council of Ministers decision dated 26 March 2024.
Road maintenance and development licensing
The 2027 budget also includes €15 million in grants to municipalities for maintaining primary roads.
A further €12 million will be provided to local authorities to compensate for revenue lost from development licensing.
An additional €12.1 million is allocated as an increase in the state grant to local authorities.
Funding for local government bodies
The budget provides €60,000 for the Cyprus Academy of Local Government, while €30,000 will support conferences, meetings, events and subscription payments relating to local government by the Union of Cyprus Municipalities, subject to receipts.
More than €20,000 of the latter amount is provided annually to the Union of Cyprus Municipalities to cover subscriptions to European organisations including AER, AEBR, CEMR & UCLG, CLGF and Europa Nostra.
A further €20,000 will go to the Union of Cyprus Municipalities to cover the salary of the Central Beaches Committee secretary and the committee's operating expenses.
€8 million for community leaders
Around €8 million is budgeted for the remuneration of serving community leaders and pensions of former community leaders in 2027.
In the Nicosia district, €1.65 million will cover community leaders' remuneration, including a 13th payment, while €860,000 will cover pensions for former community leaders.
In Famagusta, €486,150 will cover remuneration for community leaders in the occupied areas, as well as travel allowances for the community leaders of the occupied communities of Agia Triada and Rizokarpaso, including the parishes of Agia Triada, Anavrysi and Leko. Another €106,365 is allocated for former community leaders' pensions.
For Larnaca, €531,623 will cover remuneration for 32 community leaders, including the 13th payment, as well as two community leaders from occupied areas. Another €428,058 will cover pensions for 76 former community leaders in the district and one former leader from an occupied community.
In Limassol, €1,151,796 is allocated for the remuneration of 86 community leaders, while €796,482 will cover pensions for former leaders.
For Paphos, €927,000 will cover community leaders' remuneration and €784,500 will fund pensions for former community leaders.
In Kyrenia, €272,000 will cover remuneration for community leaders of occupied communities and travel allowances for the community leaders of Kormakitis and Karpasia. A further €26,000 is allocated for former community leaders' pensions.
