According to a new ICAEW thought-leadership publication, trust in governments has taken a battering since the taxpaying public was forced to act as guarantor to financial and state institutions. Events in Greece show just how bad the relationship can get.
Action is needed to restore public confidence and long-term economic resilience. But first policymakers need to understand the tools, such as Whole of Government Accounts in the UK, for tackling large-scale government deficits.
The Sustainable Public Finances: Global Views contains a series of essays from some of the world’s leading experts on fiscal policies – among them representatives from the International Monetary Fund, the Swedish National Debt Office and the European Parliament.
They highlight four important areas: the role of high-quality data in effective policy and fiscal planning; the need for countries to shift from cash-based to accruals-based accounting; the importance of financial risk and reporting standards in the public sector; and the fiscal impacts of an ageing population on long-term public finances.