Cyprus To Reform Budget Process

Tax-news.com

31 January 2000

Finance Minister Takis Klerides has announced a long overdue reform of the Cyprus Government's budget process. Until now, the Finance Minister's annual budget speech has been an unusually low-key affair because of the fact that the Government does not normally present a fully integrated budget. Budgets in Cyprus normally consist of lists of expenditure, with tax changes being put forward on an ad hoc basis throughout the year.

Mr Klerides said that he will now integrate the Government's three budgets, and he expects to be able to present a fully integrated budget showing both expenditure and taxation proposals for the first time next year. The new budget process will provide the level of openness and transparency that has been missing in Cyprus but is considered normal is most advanced democracies. It will also finally allow taxpayers in Cyprus to gauge their tax position at budget time each year and plan their finances without the unnecessary worry of tax changes being introduced by stealth, as is the current practice.

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