Nicosia mayor Charalambos Prountzos has called on the government to increase state funding to the unified municipality conceived through recent local administration reforms, as its new form demanded more spending money which would be gleaned from taxes otherwise.
Prountzos called a press conference on Wednesday at the town hall and said the interior ministry and parliament should undertake their responsibilities and make the unification and the reform in general work.
The merging of Nicosia municipalities was “a necessity”, he said, adding that the previous model had reached its limits.
“Improving the quality of services offered, which is the primary aim of the unification, needs money, investments and support,” Prountzos pointed out.
Prountzos added that in 2024 the municipality had recorded losses of €9 million, part of which would be covered by revenue in 2025.
Nicosia municipality has been repeatedly calling on the state since 2021 to intervene and increase its financial assistance, he said.
State funding for 2025 has been set at €22.5 million, however it should have been €28.8 million, according to the mayor.
Since the reforms were launched eight months ago, the municipality has seen a rise in operating costs and in December it submitted a budget attempting to equalise fees and taxes, with €73.5m expected revenue, €72.4m expenditure and €1.1m for funding the development budget.
The €10m short state funding has led to a decision to increase property tax and if a law passes with a ceiling on increases, then the municipality’s revenue would be €5.5m lower than that in the budget.
“My conclusion is that unification is succeeding, it can succeed, there is unprecedented political will on behalf of the current municipal council and the mayor, and responsibilities must be undertaken by the state and parliament. I think everyone is aware of the reality and the consequences of their actions or omissions,” Prountzos said.
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