The Likely Impact of Extended Turkish Treasury Single Account System on Public Finance in Turkey

Baris Can

Journal of BRSA Banking and Financial Markets, 2019, vol. 13, issue 2, 231-266

Abstract: Treasury Single Account (TSA) is a cash pooling system that enables public cash resources to be managed centrally and efficiently. Having a comprehensive cash pooling system is vital for countries seeking ways to increase effectiveness of their treasury cash management. For this cause, the regulation on expansion of TSA in Turkey was made in Law No. 4749 on 21 March 2018. With the latest amendment in relevant Law, the President of the Republic of Turkey has the authority to extend the scope of TSA. Within the limits of the powers conferred by the Law, the President of the Republic issued Presidential Decree on the scope of new TSA, dated on August 8, 2018. In this study, likely effects of extended scope of TSA on Turkish public finance is analysed by using a new cash management model which is de- rived from Miller-Orr cash management model. The results allege that comprehensive TSA is favourable for Turkish public financial management since it paves the way for significant amount of public resources to be managed by Turkish Treasury and it allows the Treasury to gain a considerable amount of additional interest revenue from its deposit.

Keywords: Treasury Cash Management; Public Financial Management; Treasury Single Account (search for similar items in EconPapers)
JEL-codes: G11 G18 H11 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:bdd:journl:v:13:y:2019:i:2:p:231-266

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