General budget balance and finance with treasury transactions

An effective cash and debt management is an integral part of budget management. Governments borrow according to cash management and shape their budget plans for the next fiscal year accordingly. In order for monetary and fiscal policies to be implemented effectively, cash, debt and budget management should be managed in a harmonious manner. Treasury operations and functions are of great importance for the realization of these purposes. In this study, the treasury management system in our country is discussed. First of all, the historical phases until today's treasury system is discussed under the name of Turkish treasury history. Then, cash, receivables, debt and risk managements, which are treasury functions, are explained and their relationship with the budget is evaluated. In the 5th chapter of our study, the relationships between borrowing, cash/banking and other transaction items and the general budget primary balance, general budget balance and general budget cash balance variables were examined with the Granger model. The sample period covers the period of January 2006 and December 2021. According to the empirical findings of the study, a one-unit change in the general budget primary balance and general budget cash balance causes a decrease in the borrowing item and a one-unit change in the general budget balance causes an increase in the general budget variable. It has been concluded that one unit change in the balance causes an increase. In this case, it should be ensured that the country increases its cash reserves, cash balance and primary surplus for an effective cash, debt and budget management.