Public Net Worth

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