Treasury of the Republic of Cyprus

Back To Top

Public Financial Management consists of the laws, regulations, systems and procedures applied by a government to identify and collect its revenues, to allocate its resources to various activities, to realize its expenditure, to record its accounting transactions, and to act upon the outcomes of any audits and reviews conducted.

The project of modernizing the public financial management of the government represents an initiative of the Treasury of the Republic of Cyprus which aims to strengthen the ability of the government to carry out proper financial management. The target of the project is to reinforce the decision-making process through the provision of relevant, comprehensive, trustworthy and prompt information, both to the decision makers and to the citizens, promoting in this way accountability and transparency, and increasing the efficiency of the governmental operations. This will be achieved through the completion of two actions-pillars that are incorporated in said project and are as follows:

    · Transition from the cash accounting basis to the accrual accounting basis; and
    · Creation of Financial Management Directorates.

These initiatives, which are currently underway, aim to improve the quality of the information provided (more comprehensive, relevant, prompt, valid), to strengthen the decision-making processes, and to improve the administrative ability, efficiency, transparency and accountability of the State.

By introducing the accrual basis of accounting, it will be able to provide more comprehensive information pertaining to the financial state of the government, and the creation of the financial management directorates will enhance the ability to assess and use this information, thus the process of taking important decisions will be reinforced.

In the course of this reform project, all those affected will be briefed and/or trained accordingly while, upon its completion, the financial management of the government will be carried out on a modern basis, similar to the one that the most progressive states in this field have in place.