Research On The Coordination Of Chinese Treasury Cash Management And The National Debt Management

In2001, with the management of public finance system construction and improve, China begins to implement central collection and payment of treasury management system reform gradually, the purpose was to establish a fund collection, payment and operation control, covering the treasury cash management, government accounting system and debt management and a series of budget execution system of the modernization of the national treasury management system. Implementation of the treasury’s concentration of accepting and paying system management model, financial revenue and expenditure management to promote the efficiency of financial revenues and expenditures and standardization of the treasury to cash balance accelerated, the national treasury cash balance rose from310.04Billion Yuan to2.308518Trillion Yuan from December2000to March2012, Meanwhile, China’s national debt issue size also manifests as a rapid expansion trend, the national debt issued by2002has been rising from566Billion Yuan to1.5998Trillion Yuan in2011, the central government bonds of the central financial expenditure so the percentage of about9%from1990, up to111%in2010and97%in2011. Therefore, Chinese finance is existing high debt and high idle fund the coexistence of state. On one hand need to pay huge national debt issuance of interest, on the other hand, has a large treasury idle fund are not effectively use. Therefore, the treasury cash management system reform and innovation is imminent.So far, Chinese treasury management system is still in the initial stage of development, there are two key indicators to measure of a country’s treasury management level, it is respectively to the state treasury cash management and debt management efficiency, and timely and accurately for financial management and macro economy decision-making provide complete budget performance report. At present our country has not set up the treasury cash balance goals and establish daily cash flow prediction mechanism, the existence of a large number of idle cash has not been fully utilized, the treasury cash management operation mode of national debt management is backward and the single factor restricted our country badly to the state treasury management system development. Therefore, we must learn from western developed market economy countries advanced experience foundation, analytic summary our country current treasury management system, according to the national treasury cash management and the government debt management coordination put forward effective suggestions.This paper used the theoretical analysis and empirical research methods, to collect and organize large amounts of data and charts, as the treasury cash management and the government debt management coordination problems were studied. This paper is divided into six parts, the first part, Introduction. Simple statement of the research background and the significance, introduced the related concept and the research status at home and abroad. The second part, introduce developed market economy countries treasury cash management experience for reference, mainly summarized the treasury cash management and the general mode, the British government treasury cash management practice. The third part, describe the central Treasury cash management present situation in China. First introduce the Treasury cash management’s function, the goal and significance. Secondly, analyzes our country in recent years the central treasury appropriated the basic characteristics of the balance. Finally, sums up the treasury cash management face in China and the problems and challenges. The fourth part, this paper introduces the present situation of the management of Chinese government bonds. Respectively expounds the principle of management of the national debt, mode and types of control, national debt management development course, national debt management and significance of the balance. The fifth part, this paper mainly discusses the treasury cash management and government debt management and coordination with quantitative analysis. Firstly, it is analysis of the relationship between treasury cash management and government debt management. The second, short-term national debt issuance for pressed treasury cash flow volatility of empirical analysis, mainly including the treasury cash flow to the regularity of the analysis and issue short-term national debt and the treasury cash flow fluctuations in relation analysis. Finally, debt management and save the financial cost, improve the treasury capital efficiency empirically. The sixth part, gives policy recommendations for cash management and the national treasury debt management and coordination. Including the establishment of daily cash flow forecast mechanism, setting the optimum capital remaining sum of library goal, perfect balance of national debt management system, continuous rolling issue short-term national debt and regularly issue long-term national debt, a variety of tools with idle treasury fund investment operation.