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What?
The state’s service provision, assets and liabilities are under decentralised management by various organisations. The current accounts and statements are not considered to be sufficient to form a comprehensive picture of government finances. One suggested solution is to perform consolidated calculations that combine reports from as many of the state’s financial units as possible.
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How?
Currently, no consolidated calculations are conducted on government finances, but the State Treasury has launched a project that aims to have these performed in the future.
The project will progress one phase at a time. The progress has been described with the help of a so-called roadmap of consolidated accounting and an implementation plan. In addition to the calculations currently performed separately, the project organisers must decide on the type of information required regarding which organisations are part of the government consolidation and how the various information elements are to be combined.
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Why?
More comprehensive information on government finances is required. The goal of the consolidated calculations is to
- strengthen parliament’s budgetary and monitoring powers,
- enhance the transparency of government finances,
- improve the effective use of the state capital,
- improve the planning of risk management measures and the assessment of risk statuses, financing decisions and creditworthiness.
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When?
An analysis of the requirements regarding the consolidated calculations will be conducted in 2020. The intention is to perform the consolidated calculations based on the results of this analysis.