As individuals, we depend on the services that governments provide. Collectively, we look to them to tackle the big problems - from long-term climate and demographic change to short-term crises like pandemics or war. Funding this activity, and managing the required finances sustainably, is difficult – and getting more so. But governments don't provide – or use – basic financial information that every business is required to maintain. They ignore the value of public assets and most liabilities. This leads to inefficiency and bad decision-making and piles up problems for the future. Governments need to create balance sheets that properly reflect assets and liabilities, and to understand their future obligations and revenue prospects. Net Worth – both today and for the future – should be the measure of financial strength and success. Only if this information is put at the centre of government financial decision-making can the present challenges to public finances around the world be addressed effectively, and in a way that is fair to future generations. The good news is that there are ways to deal with these problems and make government finances more resilient and fairer to future generations. The facts, and the solutions, are non-partisan, and so is this book. Responsible leaders of any political persuasion need to understand the issues and the tools that can enable them to deliver policy within these constraints. “This book is a call for sensible change. It should be answered.” (Martin Wolf, Chief Economic Commentator, Financial Times) “Public Net Worth is a book with a mission: to get governments to overhaul their approach to public finance and accounting…focusing on net worth would at least force the government to ask the right questions about how best to improve the wealth of the nation – and not further immiserate the next generation”. (Simon Nixon, former Times Economic Commentator, on his new blog ‘The Wealth of Nations’) “Public Net Worth is long overdue. It offers a vision for more sustainable public finances, through the implementation of accrual accounting and a focus on public sector balance sheets. This book presents a roadmap to more resilient governments, armed with the finance and accounting information needed to deliver more efficient and effective public services. It is a must-read for any PFM professional.” (Alex Metcalf, Head of Public Sector at ACCA) “By using corporate accounting methods, the yardstick forces politicians to take a more holistic view of what they own and owe.” (Francesco Guerrera, Reuters Breakingviews) “Never has the quest for restoring fiscal responsibility been more urgent in the wake of pandemic panic throwing fiscal caution to the winds. As the pioneer of New Zealand’s fiscal rules that have induced a culture of fiscal responsibility over the last 30 years, tribute needs to be paid to the real hero – accounting and budget reform with accrual rules at the heart and measures of net worth instituted and tracked. This book is a compelling practitioners guide for current and aspiring policymakers who take seriously their responsibilities to promote economic and social welfare, not just now but for future generations.” (Ruth Richardson, New Zealand Minister of Finance 1990-93 and responsible for the Fiscal Responsibility Act) “Public Net Worth – Accounting, Government and Democracy, suggests a holistic approach to PFM and explains how governments can improve their fiscal position from a declining net worth to a positive one that is able to withstand fiscal shocks and enhance the financial performance of the public sector.” (Arman Vatyan, Public Financial Management Leader at the World Bank) “Public Net Worth book comes at the right time to accelerate actions toward governments preparing more credible balance sheets.” (Srinivas Gurazada, Global Lead, Public Financial Management at the World Bank) “The Public Net Worth is an essential reading by all those who are concerned about the fairness of the government finance.” (W.A. Wijewardena, former Deputy Governor of the Central Bank of Sri Lanka) “The book makes a significant contribution by shining the spotlight on an important but often overlooked area of public finance: the government balance sheet.” (Terence Ho, associate professor in practice at the Lee Kuan Yew School of Public Policy, National University of Singapore) This important book…is a call for sensible change. It should be answered. ―Martin Wolf, Chief Economics Commentator, Financial Times As individuals, we depend on the services that governments provide. Collectively, we look to them to tackle the big problems – from long-term climate and demographic change to short-term crises like pandemics or war. Funding this activity, and managing the required fi nances sustainably, is diffi cult – and getting more so. But governments don’t provide – or use – basic fi nancial information that every business is required to maintain. They ig