Accounting in the context of public sector management reform

The New Zealand government has initiated reforms in the management of its public sector accounting. The process began in 1984, when the government realized that its poor economic growth rate could be addressed by applying free enterprise principles to the private and public sectors. Reforms in public sector accounting are in four main areas. These are the accountability between ministers and executives, the differentiation between expected government services and broader goals, management of resources and the differentiation between the government's purchase interest and ownership in interests.