Budgetary Balances Adjustments From Governmental Accounting to National Accounts in EU Countries: Can Deficits Be Prone to Management? Susana Jorge Hot

Uploaded by Susana Jorge     Uploaded date: March 19, 2019    
Publication date
October 26, 2018
Paper language
European Union (EU) countries are required to achieve deficit targets and are thus incentivized to use tools to keep within budgetary limits. This paper argues that
accounting discretion might be used to manage some adjustments made during the translation of data from Governmental Accounting (GA) into National Accounts(NA),
to window-dress the final deficit/surplus reported to EUROSTAT. The empirical research shows there are certain circumstances that might facilitate the use of GA–NA
“adjustment discretion.” EU authorities must pay special attention to these conditions to ensure the reliability of reported deficits. The main findings of this paper could also
assist in future efforts to improve the integrity of the adjustment process.
Preferred Citation
JORGE, S.; JESUS, M. A.; LAUREANO, R. (2018). Budgetary balances adjustments from Governmental Accounting to National Accounts in EU countries: can deficits be prone to management?, Public Budgeting and Finance, 38(4), 97-116.
Budgetary reporting; National Accounts; deficit/surplus; adjustments management; accounting discretion; central government; EUROSTAT.
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  • Comparative Research
  • International Accounting / Accounting Harmonization
  • Other
Type of Paper
Published paper

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