Accelerating Reform of Local Treasury Cash Management in the PRC
The overriding objective of treasury cash management is to ensure that the government is able to fund its expenditures and meet its obligations in a timely manner. While local government treasury cash management is equally important to other reforms in public finance, adequate reforms have lagged behind in most countries including the People's Republic of China (PRC). In recent years, most provincial fiscal authorities in the PRC have intensified their efforts to reform local government treasury cash management.
This policy note reviews the challenges ahead in the PRC and, based on international practice, makes policy recommendations to accelerate reform of local government treasury cash management in the PRC.