The role of public sector accounting in the achievement of sustainable development goals : the case of Italy

Abstract

Purpose – This study aims to explore the practical role of governmental accounting in achieving the sustainable development goals (SDGs). It considers the technical aspects of accounting, how accounting affects the society in which it operates (the social role), and expectations as to what accounting should – or should not – do (the moral role).

Design/methodology/approach – The case of Italy is investigated, and a pragmatic discourse analysis methodology is used to conduct documentary research. Developments in SDG reporting in Italy are examined and assessed as a possible model for other EU member states.

Findings – The government budgetary processes and SDG initiatives in Italy are evolving. The role of budgeting supported by a sufficiently detailed and multi-purpose chart of accounts is an important consideration. Furthermore, digitalisation can provide support by facilitating the categorisation, classification and tagging of expenditure items. Italian practices show that accounting can assume a technical role in the process of SDG achievement, but the underlying subjectivity involved does not facilitate the consideration of the social and moral aspects. The solutions used may be acceptable for decision-making at a micro level but may encounter resistance at the macro level due to the social and moral expectations of government budgeting, including the budget’s legal aspects.

Originality/value – This study taps into the social and moral aspects of management accounting, reminding us of the potential contribution of accounting tools that can be used to provide tangible results. While the limitations of the underlying technicalities are recognised, their application could be more useful ex-ante, integrating the expectations of social and moral practice, rather than looking at information ex-post.