Net debt in the Canadian public accounts: Its emergence,evolution and entrenchment

Abstract: “Net debt” is considered an important measure of the financial strength of a government and is currently a required line item on the “statement of financial position” in Canadian government financial statements. In this article, the authors look at the emergence, evolution and entrenchment of net debt in the public accounts of the Government of Canada. They trace the history of this financial indicator through a study of archival data from the Province of Canada and the Government of Canada and interpret the data using Klaus Lüder's contingency model of public‐sector accounting innovations.