For The Research Of The State Treasury Cash Management Operation Mode

The market-oriented reform of our economic system and the development of centralized payment system of treasury, all levels of fiscal revenues are increasing day by day, there is an enormous sum of idle funds in our national treasury, which caused the treasury funds are left unused, so the potential profit opportunities are showed. In this context, central treasury started the treasury cash management in 2006, and the interests during five years are nearly fifty billions. The successful operation of the treasury cash management has gotten considerable earnings for finance. Local treasury funds have risen as the year-by-year development of provincial economy. The successful operating experiences of the central Treasury cash management make local governments and national treasury advance the local treasury cash management actively. At present, how to build the local national treasury management system, how to innovate the treasury management system, and how to realize increments on the premise of ensure safety. All of the problems need to be solved.This paper bases on economics theories, applies the research method that combines with theories and demonstrations. It discusses the related theories of treasury cash management, and analyzes the current foreign and the central treasury’s treasury cash management modes by looking up different kinds of books, periodicals, magazine, academic papers, and various data published by People’s Bank of China and statistical bureau in public and so on. It combines with the correlative characteristics of local treasuries, thus to find the appropriate modes of local treasuries.The main contents of this paper include the following aspects:①This paper discusses the theoretical basis of the national treasury cash management, in order to construct the theory support of the treasury cash management;②The mode of the treasury cash management is put forward, and the inspiration to the national treasury cash management is discussed;③The analysis of the present situation of Xinjian County local treasury cash management, and the feasibility of the treasury cash management;④Discussion on the construction of local treasury cash management model, and provide reference for the operation of the national treasury cash management.This paper expounds the following views:Firstly, the current treasury cash management laws and regulations in our country don’t meet with the requirements of carrying out local treasury cash management. The pre-requisite of implementing treasury cash management in our country is built gradually. The current treasury cash management system if our country should be perfected further at present and local treasury cash management should be brought into the system, clear regulations should be made on all works of implementation of treasury cash management by local, which lay solid foundation for implementing local treasury cash management next.Secondly, an important work of treasury cash management is to realize the management purpose of improving treasury cash use efficiency by introducing market mechanism to make investment operation for treasury cash balance and using scientific methods to measure the best cash holdings of treasury through comprehensive cash flow prediction and monitoring mechanism. However, the promotion of local treasury cash flow monitoring work is not so smooth at present, especially the personnel quality and system operation of county sub-branch can’t meet with the requirements of cash flow monitoring. Local treasury should build treasury cash flow monitoring system and bring cash flow monitoring into daily work, measure cash holdings of treasury and make preparations for treasury cash management.Thirdly, making investment operation and obtaining benefits with the bottom funds which exceed the best cash holdings of treasury is the ultimate purpose of treasury cash management. At present, local treasury should follow the principle of safety first, liquidity third and benefit third with the combination of real situation of local development to make investigations on investment modes of contracted deposits, inter-bank borrowing, and national debt and cash bond, repurchase and so on, the mode of investment portfolio can be also used to find the best investment mode.