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The fundamental orientation of public accounting toward short-term revenue and expenditure flows rather than long-term asset conditions and capabilities. Even under accrual accounting, practical use remains dominated by annual flow metrics: deficits, surpluses, and net operating balances. Stocks—physical infrastructure, institutional capability, system resilience—are secondary.
Infrastructure maintenance is budgeted as annual expenditure, encouraging deferral beyond the reporting period to improve current fiscal performance, even when this worsens long-term outcomes by fragmenting capital logic.
ABS Section 3.1