Improvement of cash-flow planning by the treasury of Ukraine

Economic Annals-XXI: Volume 134, Issue 9-10(2), Pages: 51-54

Citation information:
Holynskyi, Yu. (2013). Improvement of cash-flow planning by the treasury of Ukraine. Economic Annals-XXI, 9-10(2), 51-54. https://ea21journal.world/index.php/ea-v134-14/

Yuriy Holynskyі
Assistant Professor,
Lviv State Academy of Finance
3 Kopernika St., Lviv, 79000, Ukraine
yuriy.holynskyy@gmail.com

Improvement of сash-flow planning by the treasury of Ukraine

Abstract. Introduction. Management of liquid assets by the Treasury of Ukraine is an important means of improving the quality of the financial system, which is based on the effective work with temporary deficit and liquid assets surplus. Forecasting of cash flow of budgets at all levels is an integral part of this process, so the problem of its improvement will always be relevant. Purpose. To explore the possibilities and ways of the cash-flow planning improvement by the Treasury of Ukraine.

Results. One of the most important elements of public finance is management of liquid assets, which should be classified as government assets that can be used as means of payment. At the same time, management of liquidity facilities means the desire of institutions to have sufficient (but not too large) amount of money at a time to carry out their responsibilities and obligations. Dynamics of monthly revenue and expenditure of state budget (for example, in Lviv Region during the first 4 months of 2013) demonstrates the lack of effective cash planning and the availability of permanently growing surplus. Therefore, it is obvious that there is constant availability of funds which do not «work» for the state.

Consequently, a model where a basis for cash planning system construction is ongoing monitoring and refinement of the temporary cash gaps size assessment and timing is proposed. The most effective methods of forecasting are methods of economic analysis and forecasting, based on the usage of statistics.

Conclusion. The practical value of the model lies in its usage for the analysis and prediction of parameters necessary for the implementation of the budget. It is advisable to use the results of analytical work of experts in collecting and analyzing data; the calculations; the formation of accounting information and proposals for decision making. All the information should be accumulated in the simulation model, which allows performing a multivariate calculations based on different combinations of scenarios and comparing the results.

Keywords: Treasury; Budgeting; Liquidity; Forecasting; Cash Planning

JEL Classification: H60; H70

References

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Received 21.07.2013