Republic of Cyprus
Directorate General for European Programmes, Coordination and Development

Coordination of the Government Programme


The management of public finances is put in a new context that will ensure that all available resources are used effectively, efficiently and with transparency. The centerpiece of the reform of the public financial system is the umbrella Law, that provides for the Fiscal Responsibility and Budget Systems Law (N. 20(I)/2014), voted by Parliament on February 2014.

The law provides, among other things, for the introduction of modern principles for budgeting and ensuring financial transparency on the basis of public finance management best practices. Based on this framework, line Ministries will implement new procedures when drafting their budgets including the formulation of a Strategic Plan and a three year budget for achieving their strategic goals. This new framework also includes the monitoring of the progress through key performance indicators.

In order to coordinate the new Strategic Planning and Budgeting, a Coordination Team has been established. This team consists of representatives of the Ministry of Finance, the DG EPCD and the Public Administration and Personnel Department. Specifically, the DG EPCD is responsible for the following horizontal responsibilities:

  • Preparing the Government’s Strategy Statement.
  • Providing general guidance and coordination of the Ministries in the process of Strategic Planning and Budgeting.
  • Assessing the needs for technical assistance and capacity building.
  • Assessing and monitoring the implementation of the Strategic Plans.
  • Introducing monitoring and progress evaluation mechanisms.
  • Evaluating major development projects.
  • Contributing to the preparation of the evaluation report of the Government Strategy Paper, the sectoral Progress Reports and the Progress Report of the Government Strategy.

The new procedure has already started on a pilot basis and five Ministries and two Services were invited to submit their Budgets for 2015 based on strategic planning and allocation of available resources (human and financial) to activities that promote the strategic objectives of their Ministry.

The pilot Ministries are the following:
Ministry of Agriculture, Natural Resources and Environment,
Ministry of Energy, Commerce, Industry and Tourism,
Ministry of Finance,
Ministry of Education and Culture,
Ministry of Communications and Works.

as well as the Services:
DG EPCD,
Treasury of the Republic.


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