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Some Algebra of Fiscal Transparency: How Accounting Devices Work and How to Reveal Them

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  • Mr. Timothy C Irwin

Abstract

Accounting devices that artificially reduce the measured fiscal deficit can be analyzed as transactions involving unrecognized assets and liabilities. Different accounting systems recognize different sets of assets and liabilities and are thus vulnerable to different sets of devices. Some devices can be revealed by moving progressively from cash accounting to modified accrual accounting to full accrual accounting. Revealing all would require the publication of extended fiscal accounts in which all future cash flows give rise to assets or liabilities.

Suggested Citation

  • Mr. Timothy C Irwin, 2012. "Some Algebra of Fiscal Transparency: How Accounting Devices Work and How to Reveal Them," IMF Working Papers 2012/228, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2012/228
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    References listed on IDEAS

    as
    1. Mr. Timothy C Irwin, 2012. "Accounting Devices and Fiscal Illusions," IMF Staff Discussion Notes 2012/002, International Monetary Fund.
    2. Timothy C Irwin, 2012. "Accounting Devices and Fiscal Illusions," IMF Staff Discussion Notes 12/02, International Monetary Fund.
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    Cited by:

    1. Timothy C. Irwin, 2015. "Defining The Government'S Debt And Deficit," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 711-732, September.
    2. Timothy C. Irwin, 2016. "Dispelling fiscal illusions: how much progress have governments made in getting assets and liabilities on balance sheet?," Public Money & Management, Taylor & Francis Journals, vol. 36(3), pages 219-226, April.
    3. Carlos Contreras & Julio Angulo, 2017. "Valuing Governmental Support in Road PPPs," Hacienda Pública Española / Review of Public Economics, IEF, vol. 223(4), pages 37-66, December.
    4. Andrew Feltenstein & Nour Abdul-Razzak & Jeffrey Condon & Biplab Kumar Datta, 2015. "Tax Evasion, the Provision of Public Infrastructure and Growth: A General Equilibrium Approach to Two Very Different Countries, Egypt and Mauritius," Journal of African Economies, Centre for the Study of African Economies, vol. 24(suppl_2), pages 43-72.
    5. Mr. Mike Seiferling, 2013. "Stock-Flow Adjustments, Government’s Integrated Balance Sheet and Fiscal Transparency," IMF Working Papers 2013/063, International Monetary Fund.
    6. Mr. Mike Seiferling & Mr. Shamsuddin Tareq, 2015. "Fiscal Transparency and the Performance of Government Financial Assets," IMF Working Papers 2015/009, International Monetary Fund.
    7. Timothy C. Irwin, 2015. "The whole elephant: A proposal for integrating cash, accrual, and sustainability-gap accounts," OECD Journal on Budgeting, OECD Publishing, vol. 14(3), pages 1-18.

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