The Core Proposition of the Treasury Reform and Assignment of Power and Responsibility

Chang Tang

doi:doi:10.11648/j.ijfbr.20190502.11

| Peer-Reviewed

The Core Proposition of the Treasury Reform and Assignment of Power and Responsibility

Chang Tang

Published in International Journal of Finance and Banking Research (Volume 5, Issue 2)

Received: 23 April 2019 Accepted: 30 May 2019 Published: 10 June 2019

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

The modern treasury system is the core component of the modern fiscal institution, but it draws little attention and is rarely discussed by domestic academics, until the now-present there still lacks of appropriate discourse. In practice, the functional imbalance of the current treasury system in China is very obvious. One prominent problem is the looseness and vulnerability of budget execution control, which has given rise to the ubiquitous phenomenon of public fund precipitation, frequent budgetary adjustment, tardy payment schedule, and cash rationing. Another problem is the high-level decentralization of government cash balance caused by indiscriminate special fiscal account setup，and the decentralization has greatly weakened the core functions of the national treasury. This paper will clarify two core propositions of institutional reform of the state treasury, including the whole-process budget execution control based on the expenditure cycle, and the government cash management based on the centralization of cash balances. It is expected to construct an appropriate framework of the assignment of power and responsibilities for the treasury system, and promote the deepen reform of the state treasury, building up the coordinating roles of the Ministry of Finance and the People’s Bank of China in the modern fiscal institution and supporting the modern treasury system functions.

Published in	International Journal of Finance and Banking Research (Volume 5, Issue 2)
DOI	10.11648/j.ijfbr.20190502.11
Page(s)	9-16
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Expenditure Cycle, Cash Management, Centralized Management, TSA Mechanism

References

[1]	Santoro P J (2012). The evolution of Treasury cash management during the financial crisis. Current Issues in Economics and Finance, 18, 1-11.
[2]	Hillery, Stephen E. Thompson (2000). The Federal Reserve Banks as Fiscal Agents and Depositories of the United States. Federal Reserve Bulletin, 86, 251-59.
[3]	DeCorleto, Donna A and Trimble (2004). Theresa A. Federal Reserve Banks as Fiscal Agents and Depositories of the United States in a Changing Financial Environment. Federal Reserve Bulletin, Autumn, 435-446.
[4]	Salvator Schiavo-Campo, Daniel Tommasi (1999). Managing Government Expenditure. Asian Development Bank, 194.
[5]	Xiaorong Liu (2017). Current Situation, Problems and Countermeasures of China's Treasury Cash Management. Financial Accounting, 03, 69-74.
[6]	Zhenhai Liu, Shan Ji (2018). Budget Performance Management Reform from the Perspective of Treasury. China Finance, 24, 100-101.
[7]	Yongjun Wang (2012). China's treasury system reform and firewall construction - the interpretation of the agent-manager dispute. Financial Research, 7, 112-122.
[8]	Salvatore Schiavo-Campo (2007). Strengthening Public Expenditure Management in Africa: Criteria, Priorities, and Sequencing. Anwar Shar. Budgeting and budgetary institutions. Washington: The World Bank.
[9]	Kinley D. (1905). The Relation of the United States Treasury to the Money Market. American Economic Association Quarterly, 3rd Series, 1, 199-211.
[10]	Daniel Tommasi (2007). Budget Execution. Edited By Anwar Shar: Budgeting and budgetary institutions. The World Bank.
[11]	Tianlong Ma (2019). Research on the Coordination of Central Bank Manager's Treasury and Budget Performance Management. Sub National Fiscal Research, 04, 45-51.
[12]	Earl R. Wilson, Jacqueline L (2010). Reck, Susan C. Kattelus. Accounting for Governmental & Nonprofit Entities. 15 thed. New York: McGraw-HILL /Irwin.
[13]	Daniel Tommasi (2007). Budget Execution. Edited By Anwar Shar: Budgeting and budgetary institutions. The World Bank.
[14]	Wei Li (2018). A Summary of the Discussion on the Centralized Payment of Financial Treasury. Review of Economic Research, 72, 46-57.
[15]	SalvatorSchiavo-Campo, Daniel Tommasi (1999). Managing Government Expenditure. Asian Development Bank.
[16]	Taozhen Huang, Liyuan Yin (2018). Game Analysis of the Relationship between Finance and Bank in the Treasury Centralized Payment System. Sub National Fiscal Research, 04, 61-65.
[17]	Teresa Ter-Minassian, Pedro P. Parente, Pedro Martinez-Mendez (1995). Setting Up a Treasury in Economies in Transition, IMF.
[18]	Salvatore Schiavo-Campo (2007). Budget Preparation and Approval, Edited By Anwar Shar, Budgeting and budgetary institutions. The World Bank.
[19]	Williams M (2004. Government cash management: good and bad practice, World Bank Technical Note.
[20]	Earl R. And Wilson (2010). Accounting for Governmental and Nonprofit Entities. McGraw-HILL /Irwin. New York.

Cite This Article

Plain Text BibTeX RIS

APA Style

Chang Tang. (2019). The Core Proposition of the Treasury Reform and Assignment of Power and Responsibility. International Journal of Finance and Banking Research, 5(2), 9-16. https://doi.org/10.11648/j.ijfbr.20190502.11

Copy | Download

ACS Style

Chang Tang. The Core Proposition of the Treasury Reform and Assignment of Power and Responsibility. Int. J. Finance Bank. Res. 2019, 5(2), 9-16. doi: 10.11648/j.ijfbr.20190502.11

Copy | Download

AMA Style

Chang Tang. The Core Proposition of the Treasury Reform and Assignment of Power and Responsibility. Int J Finance Bank Res. 2019;5(2):9-16. doi: 10.11648/j.ijfbr.20190502.11

Copy | Download

@article{10.11648/j.ijfbr.20190502.11,
  author = {Chang Tang},
  title = {The Core Proposition of the Treasury Reform and Assignment of Power and Responsibility},
  journal = {International Journal of Finance and Banking Research},
  volume = {5},
  number = {2},
  pages = {9-16},
  doi = {10.11648/j.ijfbr.20190502.11},
  url = {https://doi.org/10.11648/j.ijfbr.20190502.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20190502.11},
  abstract = {The modern treasury system is the core component of the modern fiscal institution, but it draws little attention and is rarely discussed by domestic academics, until the now-present there still lacks of appropriate discourse. In practice, the functional imbalance of the current treasury system in China is very obvious. One prominent problem is the looseness and vulnerability of budget execution control, which has given rise to the ubiquitous phenomenon of public fund precipitation, frequent budgetary adjustment, tardy payment schedule, and cash rationing. Another problem is the high-level decentralization of government cash balance caused by indiscriminate special fiscal account setup，and the decentralization has greatly weakened the core functions of the national treasury. This paper will clarify two core propositions of institutional reform of the state treasury, including the whole-process budget execution control based on the expenditure cycle, and the government cash management based on the centralization of cash balances. It is expected to construct an appropriate framework of the assignment of power and responsibilities for the treasury system, and promote the deepen reform of the state treasury, building up the coordinating roles of the Ministry of Finance and the People’s Bank of China in the modern fiscal institution and supporting the modern treasury system functions.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - The Core Proposition of the Treasury Reform and Assignment of Power and Responsibility
AU  - Chang Tang
Y1  - 2019/06/10
PY  - 2019
N1  - https://doi.org/10.11648/j.ijfbr.20190502.11
DO  - 10.11648/j.ijfbr.20190502.11
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 9
EP  - 16
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20190502.11
AB  - The modern treasury system is the core component of the modern fiscal institution, but it draws little attention and is rarely discussed by domestic academics, until the now-present there still lacks of appropriate discourse. In practice, the functional imbalance of the current treasury system in China is very obvious. One prominent problem is the looseness and vulnerability of budget execution control, which has given rise to the ubiquitous phenomenon of public fund precipitation, frequent budgetary adjustment, tardy payment schedule, and cash rationing. Another problem is the high-level decentralization of government cash balance caused by indiscriminate special fiscal account setup，and the decentralization has greatly weakened the core functions of the national treasury. This paper will clarify two core propositions of institutional reform of the state treasury, including the whole-process budget execution control based on the expenditure cycle, and the government cash management based on the centralization of cash balances. It is expected to construct an appropriate framework of the assignment of power and responsibilities for the treasury system, and promote the deepen reform of the state treasury, building up the coordinating roles of the Ministry of Finance and the People’s Bank of China in the modern fiscal institution and supporting the modern treasury system functions.
VL  - 5
IS  - 2
ER  -

Copy | Download

Author Information

Chang Tang

School of Public Finance and Tax, Central University of Finance and Economics, Beijing, China

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Chang Tang. (2019). The Core Proposition of the Treasury Reform and Assignment of Power and Responsibility. International Journal of Finance and Banking Research, 5(2), 9-16. https://doi.org/10.11648/j.ijfbr.20190502.11

Copy | Download

ACS Style

Chang Tang. The Core Proposition of the Treasury Reform and Assignment of Power and Responsibility. Int. J. Finance Bank. Res. 2019, 5(2), 9-16. doi: 10.11648/j.ijfbr.20190502.11

Copy | Download

AMA Style

Chang Tang. The Core Proposition of the Treasury Reform and Assignment of Power and Responsibility. Int J Finance Bank Res. 2019;5(2):9-16. doi: 10.11648/j.ijfbr.20190502.11

Copy | Download

@article{10.11648/j.ijfbr.20190502.11,
  author = {Chang Tang},
  title = {The Core Proposition of the Treasury Reform and Assignment of Power and Responsibility},
  journal = {International Journal of Finance and Banking Research},
  volume = {5},
  number = {2},
  pages = {9-16},
  doi = {10.11648/j.ijfbr.20190502.11},
  url = {https://doi.org/10.11648/j.ijfbr.20190502.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20190502.11},
  abstract = {The modern treasury system is the core component of the modern fiscal institution, but it draws little attention and is rarely discussed by domestic academics, until the now-present there still lacks of appropriate discourse. In practice, the functional imbalance of the current treasury system in China is very obvious. One prominent problem is the looseness and vulnerability of budget execution control, which has given rise to the ubiquitous phenomenon of public fund precipitation, frequent budgetary adjustment, tardy payment schedule, and cash rationing. Another problem is the high-level decentralization of government cash balance caused by indiscriminate special fiscal account setup，and the decentralization has greatly weakened the core functions of the national treasury. This paper will clarify two core propositions of institutional reform of the state treasury, including the whole-process budget execution control based on the expenditure cycle, and the government cash management based on the centralization of cash balances. It is expected to construct an appropriate framework of the assignment of power and responsibilities for the treasury system, and promote the deepen reform of the state treasury, building up the coordinating roles of the Ministry of Finance and the People’s Bank of China in the modern fiscal institution and supporting the modern treasury system functions.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - The Core Proposition of the Treasury Reform and Assignment of Power and Responsibility
AU  - Chang Tang
Y1  - 2019/06/10
PY  - 2019
N1  - https://doi.org/10.11648/j.ijfbr.20190502.11
DO  - 10.11648/j.ijfbr.20190502.11
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 9
EP  - 16
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20190502.11
AB  - The modern treasury system is the core component of the modern fiscal institution, but it draws little attention and is rarely discussed by domestic academics, until the now-present there still lacks of appropriate discourse. In practice, the functional imbalance of the current treasury system in China is very obvious. One prominent problem is the looseness and vulnerability of budget execution control, which has given rise to the ubiquitous phenomenon of public fund precipitation, frequent budgetary adjustment, tardy payment schedule, and cash rationing. Another problem is the high-level decentralization of government cash balance caused by indiscriminate special fiscal account setup，and the decentralization has greatly weakened the core functions of the national treasury. This paper will clarify two core propositions of institutional reform of the state treasury, including the whole-process budget execution control based on the expenditure cycle, and the government cash management based on the centralization of cash balances. It is expected to construct an appropriate framework of the assignment of power and responsibilities for the treasury system, and promote the deepen reform of the state treasury, building up the coordinating roles of the Ministry of Finance and the People’s Bank of China in the modern fiscal institution and supporting the modern treasury system functions.
VL  - 5
IS  - 2
ER  -

Copy | Download