The government of Cyprus recently launched the new Fiscal Responsibility and Fiscal Framework Law, after the over voting of the law in March 2014.
The new Cyprus law, characterised as an “umbrella law”, provides for the legal foundation for the basic principles of the public financial management, including the basic processes and the responsibilities of the different members of the system. The law defines the responsibilities of the Cyprus institutions, such as the Council of Ministers, the Minister of Finance, Heads of Ministries, the General Accountant of the Republic, the Head of the Public Debt Management Office, the General Auditor of the Republic, the Fiscal Council, the House of Parliament and incorporates appropriate transitional provisions, which could in the future serve as a guiding framework for implementing changes in the management of public finances.
The law also provides for the best practices in the evaluation and selection process of development projects and the best practices for the management of revenues from natural resources in a transparent and efficient way. Furthermore, the law foresees the recommendation of the Cyprus Fiscal Council, as required by the European Union, which will prepare a "Spring" and "Autumn" report of the fiscal policy of the government. In general, the law simplifies and modernises the legal framework that regulates the accounting and financial management and financial control of the Republic.