Research On Cash Management Of Grassroots Treasury

So what is the Treasury Cash Management?It means implementing strong and powerful management of the cash in order to make sure to minimize the unused cash in the national treasury and optimize the investment income of the external objectives,while ensuring the regular fiscal expenditure of the government and the safety of the treasury funds.The grass-roots management of the national treasury is specially refers to the bureau of Finance of the corresponding level of different counties and townships implement complete jurisdiction on the management of treasury cash in the local government finance.Since 21st century,with the continuous deepening of macroeconomic control policies,result in positive economic stimulus across the country which allow the good momentum of Chinese economy development since 2001.First of all,the tax revenue,non-tax revenue,and other kinds of income of financial department grows remarkably with the increase in gross national product.Secondly,the Reform of Treasury Concentrated Payment System launched in the same year improve the budget planning ability of the financial department and budget execution ability of the budget units,which Lay a solid foundation for calculating treasury cash flow scientifically.Thirdly,the deepening reform of Treasury single account pushes forward the process of special financial account funds transfer to Treasury unified accounting.Finally,with the presentation of new "Accounting Standards For Government" which bring transform includes accounting on the cash basis and accrual basis allow the financial treasury department could make overall management on the funds which were the deposition of the balance of each budget units over the years.The following reasons above make treasury cash management imperative.This text make analysis on the actual situation in the country through the use of advanced foreign experience.By taking reference to the Central ministry of Finance,finance department of each province and municipality's operating detailed rules,combine with the particular case from X district in D city to analyze the current treasury cash management status and problems in local districts and counties.Such as insufficient policies,imperfect cash flow forecast system,lengthy cash management approval process,operation variety sameness and other issues.Regarding the issues above,this text starts from the perspective of public finance management,make full use of Public economics,Macroeconomics,and theory related to Public management,to propose corresponding solutions.For an example,Use the Miller-Orr Model to calculate the best balance of grass-roots treasury funds;From the construction of the system,risks prevention and establishment of fast and efficient way of bidding methods and scientific cash flow forecast.This text provides reasonable advice to grass-roots treasury cash management through the four aspects mentioned above which hope to give reasonable suggestions to grass-roots treasury cash management.