Public Sector Accounting and Budgeting

Public Sector Accounting and Budgeting

Conceptual analysis of India's public sector accounting system

Document Type : Review Article

Author
Rasool Sarihi
PhD in Governmental Management, Islamic Azad University, Science and Research Branch, Tehran, Iran
Abstract
Public sector accounting is the system of accounting that involves recording and maintenance of books of accounts by the government authorities on their financial performance. There are three categories of organisations normally working in any environment: public, private and non-profit concerns. Each of these organisations are working on a different motive, for instance private sector organisations run for making more profit for their long-existence, public organisations or governments work for socioeconomic sustainable development of the country, where as NGOs are for rendering the services to the society at large. If this is the reality, it is clear that the financial transactions of each of these organisations are different from each other. So it is not possible to record their transactions as per single accounting standard. Hence, it is necessary to have different accounting standards applicable to these organisations individually. Government accounts must be available to the public in a transparent manner. To ensure this, it is necessary to have standards which are applicable to public sector to account for their financial transactions. The present paper is intended to analyse the public sector accounting system at the global level and in Indian context. 
Keywords
Public sector accounting
Cash basis
Accrual basis
IPSASs
IGASs

Subjects

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  • Receive Date 28 March 2021
  • Revise Date 06 April 2021
  • Accept Date 24 April 2021