Ministry of Finance denies increase in municipal state funding

The Minister of Finance has reportedly refused to increase state funding for municipalities despite the financial pressures resulting from local government reforms. Amathounta Mayor Kyriakos Xydias stated that the Minister of the Interior conveyed this absolute position to the Union of Municipalities. A study conducted by a working group from the Ministry of the Interior had documented that inflation and rising labor costs have created a financial burden of approximately 20% since the reform legislation was passed. Municipal leaders had anticipated a review of state funding following the implementation of the new administrative system. The Ministry of Finance maintains that it will not provide any increase or adjust the funding based on inflationary pressure. Mayor Xydias noted that while there was a willingness to discuss the matter with the Ministry of the Interior, the Ministry of Finance remains firm in its decision. Specific concerns were also raised regarding the funding for the maintenance of primary roads under the new system.