To What Extent Should Public Corporations Be Consolidated? Considering the Effects on Public Deficit and Debt in Spanish Municipalities
<p>The consolidation perimeter of the public sector is the most important line between the micro and macro systems of government accounting. This paper focuses on the public sector boundary and assesses the potential impact on key reported figures – such as the ‘Maastricht’ deficit and debt ra...
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| Format: | Article |
| Language: | English |
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Babes-Bolyai University, Cluj-Napoca
2017-10-01
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| Series: | Transylvanian Review of Administrative Sciences |
| Subjects: | |
| Online Access: | https://rtsa.ro/tras/index.php/tras/article/view/539 |
| _version_ | 1797262649979830272 |
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| author | Marta de VICENTE LAMA Magdalena CORDOBÉS MADUEÑO Mercedes TORRES JIMÉNEZ |
| author_facet | Marta de VICENTE LAMA Magdalena CORDOBÉS MADUEÑO Mercedes TORRES JIMÉNEZ |
| author_sort | Marta de VICENTE LAMA |
| collection | DOAJ |
| description | <p>The consolidation perimeter of the public sector is the most important line between the micro and macro systems of government accounting. This paper focuses on the public sector boundary and assesses the potential impact on key reported figures – such as the ‘Maastricht’ deficit and debt ratios – that would result from moving public corporations inside the perimeter of the consolidated general government sector, public corporations that currently lie outside the general government sector. After examining 90 Spanish local governments with populations of over 50,000 during the 2010-2012 period, our results show that including public corporations within the general government sector perimeter leads to substantial differences in deficit and debt ratios, and that these differences significantly increase the number of municipalities in violation of fiscal limits imposed by the government. We also find that municipalities’ pre- and post-consolidation debt ratios are significantly different depending on the ruling party’s political ideology. </p> |
| first_indexed | 2024-03-11T11:46:31Z |
| format | Article |
| id | doaj.art-768965e177164f5a925b1dd43bc3fc23 |
| institution | Directory Open Access Journal |
| issn | 1842-2845 |
| language | English |
| last_indexed | 2024-04-25T00:00:29Z |
| publishDate | 2017-10-01 |
| publisher | Babes-Bolyai University, Cluj-Napoca |
| record_format | Article |
| series | Transylvanian Review of Administrative Sciences |
| spelling | doaj.art-768965e177164f5a925b1dd43bc3fc232024-03-14T07:28:37ZengBabes-Bolyai University, Cluj-NapocaTransylvanian Review of Administrative Sciences1842-28452017-10-01135214816410.24193/tras.52E.9556To What Extent Should Public Corporations Be Consolidated? Considering the Effects on Public Deficit and Debt in Spanish MunicipalitiesMarta de VICENTE LAMA0Magdalena CORDOBÉS MADUEÑO1Mercedes TORRES JIMÉNEZ2Lecturer, Department of Financial Economics and Accounting, Loyola Andalucía University, Córdoba, SpainSenior Lecturer, Department of Financial Economics and Accounting, Loyola Andalucía University, Córdoba, SpainSenior Lecturer, Department of Quantitative Methods, Loyola Andalucía University, Córdoba, Spain<p>The consolidation perimeter of the public sector is the most important line between the micro and macro systems of government accounting. This paper focuses on the public sector boundary and assesses the potential impact on key reported figures – such as the ‘Maastricht’ deficit and debt ratios – that would result from moving public corporations inside the perimeter of the consolidated general government sector, public corporations that currently lie outside the general government sector. After examining 90 Spanish local governments with populations of over 50,000 during the 2010-2012 period, our results show that including public corporations within the general government sector perimeter leads to substantial differences in deficit and debt ratios, and that these differences significantly increase the number of municipalities in violation of fiscal limits imposed by the government. We also find that municipalities’ pre- and post-consolidation debt ratios are significantly different depending on the ruling party’s political ideology. </p>https://rtsa.ro/tras/index.php/tras/article/view/539national accounting, public accounting, esa 2010, consolidation perimeter, debt, deficit. |
| spellingShingle | Marta de VICENTE LAMA Magdalena CORDOBÉS MADUEÑO Mercedes TORRES JIMÉNEZ To What Extent Should Public Corporations Be Consolidated? Considering the Effects on Public Deficit and Debt in Spanish Municipalities Transylvanian Review of Administrative Sciences national accounting, public accounting, esa 2010, consolidation perimeter, debt, deficit. |
| title | To What Extent Should Public Corporations Be Consolidated? Considering the Effects on Public Deficit and Debt in Spanish Municipalities |
| title_full | To What Extent Should Public Corporations Be Consolidated? Considering the Effects on Public Deficit and Debt in Spanish Municipalities |
| title_fullStr | To What Extent Should Public Corporations Be Consolidated? Considering the Effects on Public Deficit and Debt in Spanish Municipalities |
| title_full_unstemmed | To What Extent Should Public Corporations Be Consolidated? Considering the Effects on Public Deficit and Debt in Spanish Municipalities |
| title_short | To What Extent Should Public Corporations Be Consolidated? Considering the Effects on Public Deficit and Debt in Spanish Municipalities |
| title_sort | to what extent should public corporations be consolidated considering the effects on public deficit and debt in spanish municipalities |
| topic | national accounting, public accounting, esa 2010, consolidation perimeter, debt, deficit. |
| url | https://rtsa.ro/tras/index.php/tras/article/view/539 |
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