Governmental budgetary reporting systems in the European Union: is the accounting basis relevant for the deficit reliability? Susana Jorge Hot
Uploaded by Susana Jorge     Uploaded date: November 29, 2014    
Publication date
November 20, 2014
Paper language
When reporting to Eurostat for the purpose of deficit assessment, EU member states follow National Accounts (NA) rules, specifically the European System of National and
Regional Accounts. However, the information reported is gathered from Governmental Accounting (GA), namely budgetary reporting. Consequently, several adjustments are needed when translating data from GA into NA, including those concerning the accounting basis – in some countries GA budgetary balance is already accrual-based
while in others it is still cash-based. This research aims to analyse adjustments derived from different accounting bases adopted in GA and NA, demonstrating their diversity
and materiality and the consequences for EU member states’ deficit/surplus reliability. It analyses cash-accrual adjustments to be made in Central Government data, using a few EU countries and data from the respective Excessive Deficit Procedure notifications covering the years 2005 to 2010. The main findings show that cash-accrual adjustments are more diverse and tend to be material in relation to the final deficit/surplus, in countries still adopting cash-based budgetary reporting in GA, raising questions concerning the reliability of the deficit/surplus they report.
Preferred Citation
JESUS, M. Antónia; JORGE, Susana; «Governmental budgetary reporting systems in the European Union: is the accounting basis relevant for the deficit reliability?», forthcoming in International Review of Administrative Sciences, Vol. 81(1), March 2015;110-133.
budgetary accounting and reporting, central government deficit/surplus, governmental accounting, national accounts
Type of Paper
Published paper

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