Research On Cash Flow Forecast And Management In Local Treasury

Treasury cash income and expenses are not synchronized in time and quantity, forming treasury cash balance. In the 21 st century, with economic development and the establishment of the modern treasury management system with a centralized treasury payment system, the cash balance of the state treasury increased. How to improve the use of treasury precipitation and increase the value of money becomes significant. In June 2006, the Ministry of Finance and the People’s Bank of China issued the "Interim Measures for the central treasury cash management", which marks the beginning the central level’s treasury cash management. July 15, 2013 Ministry of Finance issued "the strengthening of the local budget execution management and activating financial stock funds," indicating that treasury cash management of the local government level will be carried out gradually.With all levels of government carrying out the treasury cash management, how to effectively begin the treasury cash management has been concerned. If the government wants to improve treasury cash management level, they need to do a basic job which is to predict the future treasury cash as accurately as possible. By this way, the government can achieve the balance between treasury cash minimize risks and maximize benefits. Currently, both the theory and the practice of the treasury cash flow forecasting and management are lack of systematic research. Especially the local government, they are not only lack ing appropriate normative guidance, but also lacking relevant facilities. Based on this situation, the starting point of this paper is predicting the treasury cash flow more accurately by the theory and domestic and foreign practice. The empirical analysis of the problems of Local Government treasury cash flow forecasting and management is combined with X Pro vincial treasury cash data. At the end, this paper propounds the better policy advice to the local treasury cash flow forecasting and management. This has important theoretical significance to improve our treasury cash management system, especially the local treasury cash management system, and important practical significance to improve all levels of government treasury cash management.The key part of this paper is to solve the problem of the missing transverse multi-sectoral networking mechanisms, the lack of budget units large expenditures filing system and budget system combined with the data of the provincial X’s treasury flow. According to the empirical results, this paper propounds the better policy advice to the local treasury cash flow forecasting and management.