Effective management of cash flows in the accounts of regional and local budgets

Abstract

In a scientific article on the basis of federal experience, the authors developed a scheme for virtual management of free cash balances that are generated daily on the accounts of regional and local budgets of the Russian Federation. The paper suggests a mechanism for their placement in financial instruments, jointly regulated by the financial authorities of the constituent entities of the Russian Federation and the Federal Treasury, with the participation of exchanges and banks. The effectiveness of the model is confirmed by mathematical calculations with real indicators of the implementation of the budgets of the regions in the period of 2015–2017.