Description
Book SynopsisAs individuals, we depend on the services that governments provide. Collectively, we look to them to tackle the big problems - from long-term climate and demographic change to short-term crises like pandemics or war. Funding this activity, and managing the required finances sustainably, is difficult – and getting more so.
But governments don't provide – or use – basic financial information that every business is required to maintain. They ignore the value of public assets and most liabilities. This leads to inefficiency and bad decision-making and piles up problems for the future.
Governments need to create balance sheets that properly reflect assets and liabilities, and to understand their future obligations and revenue prospects. Net Worth – both today and for the future – should be the measure of financial strength and success.
Only if this information is put at the centre of government financial decision-making can the present challenges to public finances around the world be addressed effectively, and in a way that is fair to future generations.
The good news is that there are ways to deal with these problems and make government finances more resilient and fairer to future generations.
The facts, and the solutions, are non-partisan, and so is this book. Responsible leaders of any political persuasion need to understand the issues and the tools that can enable them to deliver policy within these constraints.
Table of ContentsPART 1. PURPOSE AND PROLOGUE
1. Owning and Owing
2. From Warfare to Welfare in Three Generations
PART 2. ACCOUNTING FOR GOVERNMENT
3. Why Government Accounting Matters
4. What Does the Government Balance Sheet Look Like?
5. Why Accrual Accounting Matters
6. Accrual Accounting – How it Works in Practice
7. Central Banks and the Public Sector Balance Sheet
8. Looking to the Future: The Comprehensive Balance Sheet
9. Comparison of Public Sector Balance Sheets
10. Comparison of Comprehensive Balance Sheets
11. Review of Fiscal Rules
PART 3. MANAGING PUBLIC COMMERCIAL ASSETS AND LIABILITIES
12. Finding, Understanding and Valuing Public Commercial Assets
13. The Asset Map: A Shortcut to Understanding Property Holdings Better
14. Institutionalising Asset Management
15. What Should Governments Do with Public Commercial Assets
16. Managing Assets Better: The Role of Public Wealth Funds
17. Pensions and Other Liabilities: The Benefits of Disclosure and Management
PART 4. PAST, PRESENT AND FUTURE
18. Balance Sheets, Culture and National Achievement in Europe 1560 - 1834
19. How Accounting Can Save Democracy
20. Implementing Change
