Treasury Management for Governments

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National governments serve every hour in every day. Some of their ministries or departments are in constant touch with the public. The quality of their performance helps to form the popular opinion of the government.

The treasury or the ministry of finance may only have an occasional interaction with the public. They are more often inwardly directed to serve the other agencies by assuring that the government has sufficient financial resources to keep all other agencies functional. The treasury becomes a key part of the infrastructure of the government.

The challenge of infrastructures is that when they function well, they are almost invisible. Unless real attention is given to their operations, however, the risk of failure extends throughout the government.

What does it take to meet all treasury payments when due.

Make all Treasury balances easily locatable and accessible by using a Treasury Single Account to manage government funds. Know how large a cash reserve you will need by producing forecasts of sufficient time horizon of daily cash flows. Act on the forecast to adjust TSA balances to maintain a target balance. Make your debt management and balance management practices flexible enough to act timely.

The aim of this site is to stimulate discussion on how to accomplish these tasks.

The strength of a national treasury does not depend on the grandness of its buildings, but on the quality of its practices.

The Challenge

What Really Matters

National budgets prioritize government operations, but cash is the resource that keeps them running.

Legislative bodies invest significant time and resources in developing a national budget each year. The budget sets out what is to be accomplished in the year and how much of the nation's resources are to be dedicated to the tasks. Further resources are invested in budget execution to make sure that items in the budget are carried out on the budget schedule. Both assume that called-for resources will be available when planned

But, a shortage of cash can stop a government dead. Cash is what governments need to command the resources they need. You cannot hire contractors or buy supplies with just budget authority; you have to pay them with money. Developing a good cash forecasting system will help the treasury anticipate future cash needs. Developing healthy markets for government debt and putting in place a strategy for borrowing will help the treasury meet those cash flow needs. We can help.

Better Fiscal Management

Manage Treasury Cash to Stop Wasting Funds

Cash balance management serves a real purpose; it keeps the government operating. Forecasts of cash flows and timely borrowing are required to maintain adequate balances for smooth execution of daily needs. Stop-and-start government operations waste resources and cost more.