All non-essential road repairs across the Isle of Man have been put on hold as part of an efficiency drive by the Department of Infrastructure.
Savings of more than £1.5m have been made in the last year and minister Phil Gawne said all areas had contributed.
However, the highways improvement scheme budget has been hit hardest, losing £700,000.
The department, which employs 731 staff, also saved £400,000 by cutting back on overtime.
"The Highways improvement scheme budget which is predominantly used to increase the safe use of our roads and to ease congestion has been reduced by £700,000 per annum," said Mr Gawne.
"This allows us to attend to critical issues but we have to defer those improvements which remain desirable but not essential."
Highway maintenance, which includes grass and hedge cutting, tree lopping and gully emptying, has been reduced by £200,000 per annum.
Savings have also been made in the airport budget, harbours division and by cutting down on the use of external consultants.
Mr Gawne added: "Inevitably when this level of savings are introduced there will be some reduction in the level of service we can offer, however, this has as far as possible been kept to a minimum."