Dispelling Fiscal Illusions: How Much Progress Have Governments Made in Getting Assets and Liabilities on Balance Sheet?

April 21, 2016

Preview Citation

Format: Chicago

Timothy C Irwin. Dispelling Fiscal Illusions: How Much Progress Have Governments Made in Getting Assets and Liabilities on Balance Sheet?, (USA: International Monetary Fund, 2016) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

When rights and obligations are not recognized as assets and liabilities on a government’s balance sheet, the government’s deficit can be reduced by selling off-balance-sheet assets or incurring off-balance-sheet liabilities. This paper examines how much progress has been made in recognizing assets and liabilities and thus dispelling the fiscal illusions that such transactions create. Looking at the accounts, government-finance statistics, and long-term fiscal projections produced in 28 advanced economies in the period since 2003, it finds good progress in the recognition of some assets and liabilities, such as accounts payable and simple financial assets, but much less in others, such as civil-service pensions.

Subject: Accrual accounting, Economic and financial statistics, Financial statements, Fiscal accounting and reporting, Government finance statistics, Labor, Pensions, Public financial management (PFM)

Keywords: Accounts payable, Accrual accounting, Balance sheets, Country, Deficit, Financial statements, Fiscal accounting and reporting, Fiscal illusions, GFS asset, Global, Government, Government balance sheets, Government finance statistics, Nonfinancial asset, Pension assets, Pensions, Summary balance sheet, Summary GFS balance sheet, WP

Publication Details

Pages:

17
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/095
Stock No:

WPIEA2016095
ISBN:

9781475552829
ISSN:

1018-5941

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