What is it about?
Democratic governments have experienced difficulties in controlling the growth of long-term, e.g. retirement, obligations because they do not recognize these commitments until they are due to be paid, This paper offers an accounting for these obligations that recognizes cost as benefits accrue when they are still manageable by both government and beneficiaries.
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Why is it important?
A change in budgeting for these obligations is necessary to avoid the economic and social turmoil that will result under current policy when governments are unable to pay benefits which beneficiaries have been encouraged to expect and have relied on in their own life time financial plans.
Perspectives
This paper is an attempt to address a significant threat to the survival of democratic governance that is largely ignored by policy makers.
Dr Marvin M Phaup
George Mason University
Read the Original
This page is a summary of: Budgeting for Mandatory Spending: Prologue to Reform, Public Budgeting & Finance, October 2018, Wiley,
DOI: 10.1111/pbaf.12210.
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