| This thesis comes from a research topic "Government Cash Management and T-Bills Operation", which is cooperated by the People's Bank of China and Chinese Finance Research Institute of SWUFE. In the process of completing the topic I bring about strong interest on government cash management. This is why this thesis is written. The so-called "Government cash management" is the cash management carried out by the government. As the inevitable result of market economy development, it is not gifted. Before 1970s, no one paid attention to cash management, even in America. In 1970s, government began to attach importance to cash management because of increasingly weak fiscal pressure. In the last 20 years developed countries congregated various main factors such as advanced principle, technique and market etc. in government cash management, making use of domestic, international financial market, and the information technique, launching routine operation of government cash management. All of this constitutes an important symbol of public finance management modernization. In our country the demand for government cash management is also imminent. The cash balance in the treasury adds up to, How to make use of this fund is becoming an urgent problem. There are four chapters in this thesis: Chapter I is "The theoretical foundation of government cash management". It talks about concept, target, contents, significance of government cash management in order to have a total understanding of it. In developed countries, government cash management refers to the measures of issuing T-bills at regular intervals by the Ministry of Finance and operating the treasury cash daily, realizing the goal of smoothing the fluctuation of circulating volume of treasury cash and improving efficiency. Chapter II is "The international government cash management practices". It elaborates government cash management practices of U.S.A and U.K. The practices include four aspects: the framework of government cash management, the target of government cash management, the setting of Treasury Single Account and the operation of government cash management. U.S.A mode: firstly, issuing T-bills every week according to the forecast of treasury cash. Secondly, opening deposit accounts in commercial banks. At present, the day-end cash balance of U.S.A keeps at about US $5 billion in the Central Bank, while the remaining large amount of cash is deposited in the "Tax and Loan Accounts" of the commercial banks. When the day-end balance of the account falls short, the U.S.A Ministry of Finance will transfer the deficit cash from the "Tax and Loan Accounts". When the balance shows surplus, the U.S.A Ministry of Finance will transfer the surplus cash to the "Tax and Loan Accounts" to gain interest income. U.K mode: firstly, issuing T-bills every week. Secondly, entering the money market to have daily operation. The U.K Ministry of Finance opens deposit account only in Bank of England and keeps the day-end cash balance at the level of about 0.2 billion pounds. When the day-end balance of the account falls short, the U.K Debt Management Office (DMO) will sell out or repo its financial tools to finance cash for the treasury. When the balance shows surplus, the U.K DMO will buy in or reverse repo high-quality financial tools to gain interest income. Chapter III is "Two preconditions of carrying out government cash management". Although there are different government cash management modes in different developed countries, each country must have two preconditions: the foundation of Treasury Single Account System and the regular issuance of T-bills.The first subsection talks about the foundation of Treasury Single Account System. The thesis discusses the general structure of Treasury Single Account System firstly and then makes analysis on how important it is for government cash management. Next, the author analyses current treasury management system in China and points out that its biggest disadvantage is the decentralization of treasury cash. At last... |
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