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The disparity in accounting treatment between obligations that must be recognised immediately versus those that can be deferred. Obligations recognised immediately affect reported deficits and debt levels; obligations deferred appear fiscally neutral in the present. This distinction matters more in public decision-making than the economic equivalence of underlying commitments.
Public borrowing requires immediate debt recognition even when assets deliver services over decades. PPP payment commitments may be recognised only as services are delivered, or classified as contingent liabilities—the economic substance is similar, but accounting treatment differs.
ABS Section 3.2