1887

OECD Journal on Budgeting

The OECD Journal on Budgeting is published three times per year. It draws on the best of the recent work of the OECD Committee of Senior Budget Officials (SBO), as well as special contributions from finance ministries, academics and experts in the field and makes it available to a wider community in an accessible format. The journal provides insight on leading-edge institutional arrangements, systems and instruments for the allocation and management of resources in the public sector.

English Also available in: French

Budgeting for federal insurance and retirement programmes: Cash or Accrual

Federal retirement programmes and some federal insurance programmes have long-term effects on the budget. But the federal budget process typically uses cash-based accounting measures that cover a 10-year period, which may be too short to accurately report those programmes’ net budgetary effects over the long term. In contrast, using accrual accounting for such programmes would accelerate the recognition of long-term costs and would display the expected costs of new commitments when they were incurred and thus were most controllable. However, such estimates are less transparent and verifiable than cash-based estimates, involve more uncertainty, and can complicate budget reporting.

English

Keywords: accrual budgeting, federal retirement, federal budgeting, federal insurance
JEL: H50: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Related Policies: General; H60: Public Economics / National Budget, Deficit, and Debt / National Budget, Deficit, and Debt: General
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