The 286 communities in the government-controlled areas of Cyprus will receive an amount exceeding €17.4 million in state funding in 2026.
This is according to a Ministry of Finance circular featuring the guidelines for the Community Councils and the Councils of Community Service Complexes when preparing next year's budgets.
As stated in the circular signed on behalf of the Ministry’s Permanent Secretary Andreas Zachariades, by the Head of Directorate at the Ministry’s Directorate of Budget and Fiscal Control, Marios Hadjidamianou, the 2026 budgets and the 2026-2028 Medium-Term Fiscal Frameworks will be prepared on a cash basis, taking into account the amount of state funding as well as the distribution of credits per community.
According to Hadjidamianou, the budgets of Community Councils (CCs) and Community Service Complex Councils should be balanced, meaning that the budgeted revenues from the operation of each CC, including state sponsorship, should at least cover the budgeted expenses for its operation, including the installments for the repayment of loans.
Based on the 'Communities Law', he adds, the budgets of the Communities are approved by the relevant District Officer and the Minister of Finance when required, within the framework of the state's budgetary capabilities.
He also points out that it is particularly important that budgets are prepared prudently and that a rational assessment of expenditures and prioritisation of priorities be made, within the framework of the financial capabilities of each CS, in order to avoid the need to revise them during the year.
The revenue
Regarding revenue, Hadjidamianou emphasises that revenue estimates should be realistic and take into account the current economic situation and the prospects for the course of the economy, but mainly the collection capabilities of each community.
"For revenue estimates, details of the main parameters on the basis of which the calculations were made should be provided," he underlines.
Furthermore, he emphasises, "the fluctuations in revenue should be adequately explained and it should be stated whether the fluctuations are due to legislative regulation, due to the introduction of new measures, or for other reasons."
"Particular attention should be paid to overdue revenues, that is, to the amounts owed to the CCs by third parties, for which the necessary procedures should be promoted and all necessary measures taken for their collection," he indicates.
The costs
Regarding expenditures, the head of the budget and fiscal control department of the Ministry of Finance states that these should also be realistic and calculated rationally, always within the framework of the financial capabilities of each community.
After reminding that personnel costs are only included in the budgets of the Complexes, he emphasises that particular emphasis should be given to the following categories of expenses:
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Annual contribution of the Community Centre to the Complex: should take into account the following:
o Cost of personnel of the complex (except for that covered by state funding)
o Cost of covering operating expenses
o Cost of managing waste collection
o Cost of providing health services
o Cost of providing cleaning services
o Cost of providing traffic regulation services
o Cost for the implementation of the Dog Law
o Cost for cleaning and maintenance of green spaces
o Cost for providing services for organizing cultural and other events, social welfare actions
o Other contributions
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Purchase / Lease of Services: The relevant Circulars of the Ministry of Finance (no. 1372/ dated 17.09.2008, no. 1517/ dated 14.05.2015, no. 1532/ dated 11.02.2016 and no. 1588/ dated 22.03.2019) and the General Accounting Office of the Republic (no. 16/ dated 1/12/2023) should be followed, which provide complete and clear instructions regarding the cases in which a contract for the purchase of services is concluded, as well as the procedures that must be followed to avoid the creation of an employer-employee relationship between the contracting parties.
Development projects
Regarding development projects, Hadjidamianou recalls that new projects should be preceded by an evaluation or study (where deemed necessary), which will demonstrate whether the project is affordable and economically viable, has high added value and is consistent with policy priorities, in accordance with the procedure provided for in the "Fiscal Responsibility and Fiscal Framework Law of 2014" [(L. 20(I)/20214), Part XI (articles 82-89)].
It also reminds that the standard documents for evaluation purposes are available on the website of the General Directorate of Development, which should be completed in collaboration with the relevant District Administration.
In relation to ongoing projects, it states that the relevant Table should be completed with all the requested information.
Additionally, he notes, "it has been observed in the past that the relevant Table incorrectly does not include the amount of the Community contribution for co-financed projects. Any contribution must necessarily be included in the Table in order to have a complete picture of the Community's projects," he further emphasizes.
In his circular, Hadjidamianou urges the CS to include in their budget only those projects that are deemed both necessary and mature, with priority given to those financed by European funds and provided that there are sufficient funds for their implementation.
It is noted that the budgets of the Community Councils and the Community Service Complex Councils, together with the Medium-Term Fiscal Frameworks 2026-2028, must be submitted, in the format specified in the standard documents, to the Minister of Finance and the relevant District Administration, both in electronic form and in paper form, together with the necessary supporting documents, no later than October 31, 2025.
Which communities will receive the largest amounts?
According to the relevant table accompanying the circular for the preparation of community budgets for 2025, the following villages will receive the largest amounts of state funding:
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Chloraka: €388,922.88
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Xylofagou: €376,714.12
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Palaiometocho: €290,543.32
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Emba: €281,263.31
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Kokkinotrimithia: €277,943.83
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Xylotymbou: €276,681.21
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Ormidia: €272,012.55
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Pyla: €259,529.15
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Prodromos: €249,610.34
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Parekklisia: €225,472.94
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Lythrodontas: €209,200.79
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Kouklia: €205,362.19
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Tala: €203,956.62
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Akaki: €188,626.49
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Kyperounta: €185,433.35
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Ayia Varvara: €169,202.59
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Pissouri: €166,102.02
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Kakopetria: €156,000.85
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Peristerona: €155,959.07
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Astromeritis: €155,819.62
The smallest amounts
On the other hand, the smallest amounts in state sponsorship will be given in the following amounts:
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Gerovasa/Trozena: €3,113.72
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Vikla: €3,125.94
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Mousere: €3,563.51
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Prastio: €15,170.75
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Kidasi: €15,875.18
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Kourdaka: €17,847.24
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Kissousa: €18,954.64
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Akapnou: €20,244.89
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Kouka: €21,192.93
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Filousa Kelokedaron: €21,208.08
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Kato Akourdallia: €21,457.16
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Kato Koutrafas: €21,458.79
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Fassoula: €21,905.31
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Plataniskia: €22,354.68
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Arminou: €22,428.04
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Ayios Thomas: €22,473.00
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Mamonia: €22,627.47
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Filousa Chrysochous: €22698.76
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Archimandrita: €22,711.96
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Eledio: €22,726.90
A detailed distribution of state funding for communities in 2026 can be viewed here, in Greek.
(Source: InBusinessNews)
