Research On Treasury Cash Management Model And System In Yunnan Province

local state treasury’s cash management system is effective for improving the management efficiency of treasury’s cash flow and money position, and is also a system arrangement which would provide incentive for governmental departments to engage in cash management.Through a comprehensive cash flow forecasting and monitoring mechanisms, optimum cash balance of Treasury is determined by using some scientific methods. In order to gain the risk minimization of investment income, market mechanism operation of the treasury investment of cash balances is introduced. The State Council issued a notice of <Circular of the Ministry of Finance notice on further strengthening the management of special accounts> in march 2012, which put forward the requirements of pilotting and implementing of appropriate local state treasury cash management in provincial finance departments.The demands of carrying out treasury cash management by local governments and related departments are becoming stronger.Yunnan is a undeveloped province characterized on frontier, ethnic minority, mountainous region,and poverty. Local government is suffering for paying debts since revenue falls significantly short of expenditures ever since a long time ago.Implementation of the state treasury cash management is effective to stimulate the local government’s consciousness of finance management,improving ability of finance management and gathering public revenue of local government. An effective state treasury cash management could open up new sources of revenue for local government finance without increasing the tax burden. At the same time, state treasury cash management can be effectively combined with positive financial policy formulated by the central authorities on the one hand, to increase spending on areas of broad masses of the people’s livelihood. On the other hand,state treasury cash management can be conducive to its flexible application of the investment and financing mechanism, improving the efficiency of the use of funds.In this context, draw lessons from foreign successful experience of implementing the state treasury cash management, promote the modern national governance mechanisms and institutional innovation are objective requirement of local government to addresss fiscal pressures and government debt pressures.This paper based on the vision of public financial management,put knowledge of public administration and public economic to good use to study and analyze the system and models of state treasury cash management. It also put forward a proposal for state treasury cash management operations according to the reality of Yunnan which provide some reference value on the construction of treasury cash management mode in Yunnan.The full text divides into six parts,first introduced the background and significance of topics;Secondly, it introduces the research situation of the state treasury cash management by defining the concept of state treasury cash and its objectives,functions and effect.The third part introduces the international experience and reference of Treasury cash management;The forth part is the comparison between central and local state treasury cash management practices and their present situation.Part five analyze Yunnan present situation and existing problems of Treasury cash management;The last part is about the state treasury cash management mode selection and operational recommendations for Yunnan.