THE Department of Infrastructure has announced what measures it has put in place to help save money.
It will have a £2m reduction of its overall revenue budget in the coming year which in real terms is a five per cent reduction on last year.
A statement by the department said it is working - through its planning and building control division - in partnership with the Department of Economic Development to encourage new commercial and residential development.
However the department said it has made the "difficult decision" to reduce the availability of historic buildings conservation grants by 50 per cent from April this year and will be ensuring that all grants are more effectively targeted to ensure value for money.
Isle of Man Airport will be affected by the cut backs.
The statement added: "Lower passenger figures through the airport have impacted significantly on income over the past two years and this year the department has frozen the airport budget and increases in costs will have to be absorbed through a further reduction in headcount and ongoing reductions in energy costs."
The department said its operations division has seen a significant reduction in its resources over the past two years.
A "root and branch" review of depot provision in government is being led by the department and it is optimistic that over the next three years a rationalisation of existing depots will produce "substantial benefits".
The department has already saved money by the elimination of vacant posts through new ways of working (£424,000), reductions in overtime and other additional staff payments (£355,000), reduction in sewerage grant (£340,000), other grant reductions (£294,000), increasingly efficient use of technology and professional advice (£125,000) and the vacation of rented premises (£80,000).
The statement by the department said its priority was to "maintain current assets and infrastructure to a good standard to ensure that the Island remains attractive to residents and new investment.
"Two capital schemes have been prioritised within the department and with this in mind, and over the next two years, residents should see improvements to Douglas Promenade and the key strategic route of Peel Road in Douglas."