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Accrual Budgeting and Fiscal Policy

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  • Mr. Marc Robinson

Abstract

Can an accrual budgeting system-a system in which budgetary spending authorizations to line ministries are formulated in accrual terms-serve the needs of good fiscal policy? If so, how must such a system be designed? What are the practical challenges which may arise in implementing sound fiscal policy under a budgeting system which is significantly more complex than traditional cash budgeting? These are the primary questions addressed in this paper. Because any budgeting system must support the control of key fiscal policy aggregates, the paper also considers the case for reformulating fiscal policy in terms of accrual rather than cash aggregates. The primary focus is on the potential fiscal policy role of net lending and net financial debt. However, the paper also considers whether net worth is an aggregate with major fiscal policy relevance.

Suggested Citation

  • Mr. Marc Robinson, 2009. "Accrual Budgeting and Fiscal Policy," IMF Working Papers 2009/084, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2009/084
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    References listed on IDEAS

    as
    1. Martin Feldstein, 2002. "The Role for Discretionary Fiscal Policy in a Low Interest Rate Environment," NBER Working Papers 9203, National Bureau of Economic Research, Inc.
    2. Richard A. Musgrave, 1988. "Public Debt and Intergeneration Equity," International Economic Association Series, in: Kenneth J. Arrow & Michael J. Boskin (ed.), The Economics of Public Debt, chapter 5, pages 133-148, Palgrave Macmillan.
    3. Eichenbaum, Martin, 1997. "Some Thoughts on Practical Stabilization Policy," American Economic Review, American Economic Association, vol. 87(2), pages 236-239, May.
    4. Willem H. Buiter, 1982. "The Proper Measurement of Government Budget Deficits: Comprehensive Wealth Accounting or Permanent Income Accounting for the Public Sector," NBER Working Papers 1013, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Hans Pitlik & Michael Klien & Stefan Schiman-Vukan, 2017. "Stabilitätskonforme Berücksichtigung nachhaltiger öffentlicher Investitionen," WIFO Studies, WIFO, number 60595.
    2. Riccardo Fiorito, 2014. "Extra Government Debt in the Great Recession: All Intentional?," Working Papers LuissLab 14110, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    3. Makoto Kuroki, 2022. "Impact of Depreciation Information on Capital Budgeting among Local Governments: A Survey Experiment," Australian Accounting Review, CPA Australia, vol. 32(2), pages 201-213, June.
    4. Togi Parulian Purba, 2017. "Determinant of Compliance Investors in Satisfying a Fiscal Obligation," International Journal of Economics and Financial Issues, Econjournals, vol. 7(6), pages 1-7.
    5. Maria‐Eleni K. Agoraki & Stella Kardara & Tryphon Kollintzas & Georgios P. Kouretas, 2023. "Debt‐to‐GDP changes and the great recession: European Periphery versus European Core," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 3299-3331, July.

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