• What?

    Maintaining the state’s liquidity is the most important task of its financial operations. Achieving this requires constant, long-term planning and carefully conducted asset management. The cash flow forecast system Rahakas is used by government agencies to collect information connected to the cash flow and to create reports needed in liquidity management.

    People in charge of liquidity management at the State Treasury’s Finance Division utilise the information in the cash flow forecast system in order to acquire cash resources and plan investments. Therefore, the agencies’ role as producers of cash flow forecasts is vital. The better the forecasts created by the agencies, the more cost-effective asset management is made possible.

    The agencies are responsible for predicting the revenues and expenditures in the cash flow forecast system

    • in the long term for a 12-month period, and
    • in order to adjust the forecasts each day for the upcoming weeks.

    The agencies are required to produce the most accurate information possible on the cash flow trends over no less than the following five weeks. Every time an agency acquires more details about incoming and outgoing payments, they should update this information in the cash flow forecast system.

    Doing this regularly will guarantee updated information, which can be used by the state’s paymasters to ensure sufficient funds in all situations. Updating the cash flow forecast information according to the instructions will result in cost savings for the state.