CASH MANAGEMENT IN TURKEY TURKISH TREASURY Cash Management Department

Background to the Treasury Law no. 4059, Treasury seperated from MoF and found independent unit under the Prime Ministry. Centrally, Primarily duties are Cash and Debt Management, DG of Public Finance Treasury has own ICT and this also related with the MoF and CBRT ICT.

Functions of Cash Management Cash Management and forecasting Executing Treasury transactions, providing and managing the cash required by state expenses Monitoring and regulating the financial assets of the public institutions within the banking sector Setting principles and issuing regulations for these operations Objectives; To ensure that adequate cash is available to pay for expenditures when they are due. Forecasting revenues and expenditures accurately in terms of amount and time. Reduce the deviations from cash programs Remunerating the idle cash balance. (Studies are carried on...) As a result, effective cash management contributes to the smooth implementation of the operational targets of fiscal policy, the public debt management strategy, and monetary policy. No Treasury charge, Revenue Collection and providing payments.

Treasury Cash Flows General Budget Special Budget Special Budget Regulatory Bodies Revenue Admin. Expenditures Deficits Tax Revenues Surpluses Social Security Ins. TREASURY CMD Deficits PrivatizationRevenues Privatization Admin. Local Government Transfers from CG Budget Capital Injection/Duty Loss Transfers New Borrowing Dividends Treasury DMD Debt Pincipal and Interest Payments Public Banks/ Entp. Extrabudgetary Funds

Strategic Planning 02 03 01 Cash Planning and Management Utilization of Public Sector Financial Resourses Institutional Capacity Expertise (HR) Capacity Institutional Knowledge Operational Structure Performance Management Internal Control System Remuneration of Treasury Resources Minimization of the Redundant Cash Effective Utilization of Other Public Resources Cash Planning &Management Structure Operational Quality and Risks Forecasting Capabilities PFM plan is exist and its process is on going to cover all entities,

Major Changes TSA developments Short Time Money Market Operations 2008 The initial application, 1972 TSA has been reformed in 2007 PEPS, updating system in 2011 Short Time Money Market Operations 2008 CRS- Cash Request System 2011 Renumeration 2011 Daily base year cash programming

Challenges Developing a cash planning and management infrastructure fully compatible with central government budget structure Revenue and expenditure classifications of the budget are not compatible with the cash inflow-outflow series. A better input-output relationship could be established between budgetary and cash –based data Improving operational quality and speed and minimizing the risks of the cash planning and management processes MsExcel plays an important role in the planning and execution process Manual controls and decisions should be evolved to more automotized controls and decision support systems Improving revenue and expenditure forecasting capabilities Cash request system should be modified in order to make it more user-friendly An effective econometric-modelling capacity should be developed