Accrual Budgeting and Fiscal Policy
IMF Working Papers, April 1, 2009
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- Accrual Budgeting and Fiscal Policy
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Bibliographic details
- Authors: Marc Robinson
- Published: April 1, 2009
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451872316.001
Overview and central questions
- 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?
Primary focus and analytical scope
- The paper examines the case for reformulating fiscal policy in terms of accrual rather than cash aggregates because any budgeting system must support the control of key fiscal policy aggregates.
- Primary focus is on the potential fiscal policy role of:
- net lending
- net financial debt
- The paper also considers whether net worth is an aggregate with major fiscal policy relevance.
- Practical implementation challenges of accrual budgeting relative to traditional cash budgeting are addressed.
Key findings and themes (as presented)
- Accrual budgeting changes how budgetary spending authorizations are formulated to line ministries by expressing them in accrual terms.
- Any budgeting system must enable control of key fiscal policy aggregates; therefore, consideration is given to accrual aggregates as alternatives to cash aggregates.
- Net lending and net financial debt are emphasized as principal accrual aggregates of policy relevance.
- The potential relevance of net worth as a fiscal policy aggregate is explored.
Practical challenges highlighted
- Implementing sound fiscal policy under an accrual budgeting system involves greater complexity than traditional cash budgeting.
- Designing an accrual budgeting system that supports fiscal policy requires addressing how accrual aggregates are measured, reported, and controlled within budgetary processes.
Publication and metadata (preserved exactly)
- Author: Marc Robinson
- Date: April 1, 2009
- Pages: 33
- Volume: 2009
- Issue: 084
- Series: Working Paper No. 2009/084
- DOI: https://doi.org/10.5089/9781451872316.001
- Stock No: WPIEA2009084
- ISBN: 9781451872316
- ISSN: 1018-5941
- Subject: Accrual accounting, Capital spending, Currencies, Expenditure, Fiscal policy
- Keywords: aggregate demand, balance sheet value, cash balance, cash budget, cash requirement, control total, debt measure, net lending, WP
IMF Working Paper: "Accrual Budgeting and Fiscal Policy" by Marc Robinson, April 1, 2009. 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.
Content in this bundle
- Accrual Budgeting and Fiscal Policy; Marc Robinson; IMF Working Paper 09/84; April 1, 2009