Public net worth – the measure of financial strength and success

Public Net Worth: Accounting – Government – Democracy (Palgrave Macmillan, London 2023) aims to do more than inform or educate. It is a book with a mission: to get governments to overhaul their approach to public finance and accounting.

The five authors draw on a wealth of professional experience in public finance across various jurisdictions to make the case that government accounting and budgeting should focus on “public net worth” – the sum of public sector assets and liabilities – rather than mere cashflow, public debt or deficits. This, they claim, holds the key to better decision-making, more effective government and stronger democracies.

Importance of the government balance sheet and “net worth”