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Budgeting under public scrutiny: tracing the justification work of stakeholder groups in the controversy of an Olympic candidature

Kai Michael Krauss (Department of Accounting, Stockholm School of Economics, Stockholm, Sweden)
Anna Sandäng (Stockholm School of Economics, Stockholm, Sweden)
Eric Karlsson (Stockholm School of Economics, Stockholm, Sweden)

Journal of Public Budgeting, Accounting & Financial Management

ISSN: 1096-3367

Article publication date: 7 October 2020

Issue publication date: 19 March 2021

325

Abstract

Purpose

By mobilizing the empirical setting of a megaproject, this study problematizes public budgeting as participatory practice. The authors suggest that megaprojects are prone to democratic legitimacy challenges due to a long history of cost overruns, which provides stakeholders with a chance to dramatize a budgetary controversy.

Design/methodology/approach

Through article and document data, the authors reconstructed a controversy that emerged around the budget of Stockholm/Åre’s candidature for the Olympic Winter Games 2026. The authors used Boltanski and Thévenot's (2006) orders of worth to systematically analyze the justification work of key stakeholder groups involved in the controversy.

Findings

This study illustrates that a budgetary controversy was actively maintained by stakeholder groups, which resulted in a lack of public support and the eventual demise of the Olympic candidature. As such, the authors provide a more nuanced understanding of public budgeting as a controversy-based process vis-à-vis a wider public with regard to the broken institution of megaprojects.

Practical implications

This study suggests more attention to the disruptive power of public scrutiny and the dramatization of budgeting in megaprojects. In this empirical case, the authors show how stakeholders tend to take their technical concerns too far in order to challenge a budget, even though megaprojects generally provide an ill-suited setting for accurate forecasts.

Originality/value

While studies around the financial legacies of megaprojects have somewhat matured, very few have looked at pitching them. However, the authors argue that megaprojects are increasingly faced with financial skepticism upon their approval upfront.

Keywords

Acknowledgements

The authors would like to thank two anonymous reviewers for their constructive comments on earlier versions of this paper. The authors would also like to express their gratitude to Anatoli Bourmistrov, Giuseppe Grossi and all participants at the course “Digitalization and Accounting” at the Norwegian School of Economics (NHH) as well as participants of the Research School in Accounting (FIRE) Workshop in spring 2020. A special thanks, the authors would like to address to Emilia Cederberg, Johan Graaf, Jan Mouritsen, Desirée Ödén and foremost Marek Reuter for their helpful feedback throughout the making of this study.

Citation

Krauss, K.M., Sandäng, A. and Karlsson, E. (2021), "Budgeting under public scrutiny: tracing the justification work of stakeholder groups in the controversy of an Olympic candidature", Journal of Public Budgeting, Accounting & Financial Management, Vol. 33 No. 2, pp. 207-233. https://doi.org/10.1108/JPBAFM-06-2020-0092

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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