Public Sector Accounting Reforms and Their Role in Fiscal Accountability

Abstract

This research investigates the transformative role of public sector accounting
reforms in enhancing fiscal accountability, a critical yet underexplored nexus in
governmental financial management. Moving beyond conventional studies that
often treat accounting reforms as mere technical adjustments, this paper posits
them as fundamental institutional reconfigurations that reshape the very architecture of fiscal governance. The study’s novelty lies in its conceptual framework,
which synthesizes principles from institutional theory, public administration, and
accountability scholarship to analyze reforms not as isolated events but as dynamic
processes embedded within specific political and administrative contexts. We argue that the efficacy of accrual accounting, performance budgeting, and integrated
financial management information systems (IFMIS) in promoting accountability is
contingent upon their alignment with broader governance ecosystems, including legal frameworks, political will, and administrative capacity. Through a qualitative
multi-case study analysis of reform trajectories in three distinct jurisdictions, the
research uncovers the complex, often non-linear, pathways through which accounting innovations influence transparency, answerability, and enforcement mechanisms.
The findings reveal that successful reforms act as ’accountability catalysts,’ creating virtuous cycles of improved information quality, strengthened oversight, and
enhanced public trust. Conversely, technically sound but contextually misaligned
reforms can engender ritualistic compliance and accountability deficits. The paper
concludes by proposing a contingency model for designing and implementing public
sector accounting reforms, offering original insights for policymakers and scholars
aiming to harness financial management innovations for deeper democratic accountability and fiscal sustainability.