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Budgetary balances adjustments from Governmental Accounting into National Accounts in EU countries: can deficits be prone to management?,
Event Title
XXXVIII Italian Conference of AIDEA, “New trends” in business economics and management studies rewriting the relationship between business and society
Year (definitive publication)
2017
Language
English
Country
Italy
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Abstract
EU countries are required to maintain predetermined deficit limits and are thus incentivized to
select any instrument within their disposal to remain within the deficit limitation. This paper
argues that accounting discretion might be used by countries in managing some adjustments
made when translating data from Governmental Accounting (GA) into National Accounts (NA)
in order to window-dress their final deficit/surplus reported to EUROSTAT. Assuming that managing the final deficit is every country’s aim, the empirical study evidences certain circumstances that might facilitate the use of GA-NA ‘adjustments discretion’. Special attention must be given to these conditions by EU authorities, to assure that reported deficits are reliable enough.
Acknowledgements
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Keywords
budgetary reporting,National Accounts,deficit/surplus,adjustments management
