PUBLIC GOVERNANCE AND GOVERNABILITY: ACCOUNTABILITY AND DISCLOSURE PERMITTED BY ACCOUNTING APPLIED TO THE PUBLIC SECTOR AS A SUSTAINABILITY INSTRUMENT FOR THE STATE

Abstract

In an accounting-financial perspective applied to business organizations, the Going-Concern Principle presupposes their sustainability towards perpetuity, influencing and guaranteeing investors’ returns. In Public Management, this is no different, underlining the existence of the Going-Concern Principle of the State. This describes the State as a political society that, like the company, should be perennial and sustainable, always aiming for the promotion of the common good and the development of its people. In line with the expected contribution, this paper is aimed at discussing the importance of Accounting Applied to the Public Sector as a useful tool for effective Public Governance and Governability, in accordance with a sustainability view that is applicable to the management of the State. What the method is concerned, regarding the ends, it was an exploratory and explanatory research and, regarding the means, bibliographic and documentary research and theoretical-empirical observation were used, focusing on compliance with Public Management disclosure (transparency) and accountability (social responsibility to render accounts to society). As a result, a strong interrelation between the terms was verified, as Accounting evidences governments’ results and actions based on governance (the means/the how) related to governability (political power and actions), and also that both are oriented towards the sustainability of the State. As regards the latter, it was also verified that it is more comprehensive than the term “sustainability” itself, which is often narrowed down to the eco-environmental view and ignores important financial (equilibrium) and economic-social variables inherent in the social function of the State Como.