Treasury Management for Governments

Pattanayak and Fainboim: Treasury Single Account: Concept, Design, and Implementation Issues, IMF (WP 10/143), May 2010  https://www.imf.org/external/pubs/ft/wp/2010/wp10143.pdf

Onde estão os fundos do governo? Eles estão acessíveis? Eles são conhecidos na íntegra todos os dias? Como a Conta Única do Tesouro realiza isso?

Functions of a Treasury Single Account

What is a prudent level of cash to keep in the TSA beyond known, immediate needs? 

Volatility of the cash forecast and of the government operations - both receipts and disbursements - will come into play.

It seems unwise, however, to simply apply a Normal distribution (bell curve) method to setting safe levels.  

To Read Further ... 

Q 4-03.07.   What can the treasury do with surplus funds?
The treasury may take the lead in investment of surplus funds.  The treasury has the advantage of a good forecast of future cash balances that may highlight how much money is available and for how long.  When short-term funds are available the treasury should invest those funds within the guidelines established by a predefined investment policy.

Two possible uses of surplus funds might be to place excess balances back in the economy by collateralized bank deposits or to use cash balances to reduce outstanding short-term debt.

Pattanayak and Fainboim: Treasury Single Account: an Essential Tool for Government Cash Management, IMF, August 2011.   https://www.imf.org/external/pubs/ft/tnm/2011/tnm1104.pdf

Praxis: Caixa - A conta única do tesouro

The design of the TSA.  Must the TSA be in a centralized account held by a single depository?  Are there ways to create a decentralized TSA?  If so, what are the challenges or limitations on its effectiveness?

The TSA, also known as the compte unique du trésor or cuenta única del tesoro provides a single location - as an actual account in a depository or as a single account within the accounting structure that gives the treasury control over its funds.

The role of the TSA.  What advantages are given to the treasury by a TSA? How is the TSA integrated into other fiscal decisions?

Managing balances in the TSA.