The Treasury Function and the Treasury Single Account

Abstract

This chapter describes the management of the government’s cash resources and how that links to the budget preparation and execution processes. More specifically, the chapter discusses the management of the daily, weekly and monthly patterns of government spending and revenue flows; cash flow forecasting; and how this treasury function (as it is generally termed) is best developed and managed through a treasury single account (TSA) held at the central bank. Other cash management activities, such as the targeting of the government cash balances in the TSA or the banking sector and the smoothing of the government’s daily cash flow by transactions in the financial markets, are linked operationally with debt management. These are discussed in Chapter 31.KeywordsCash FlowCentral BankCommercial BankBank AccountCash BalanceThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.