ABSTRACT
Management of cash flow is extremely important to the fiscal efficiency of governments. This importance is underscored by the fact that most general-purpose governments in the United States generate their budgets on a cash basis, even though they are accounted for on a modified accrual basis. At least three different terms are used to describe this process, "cash budgeting," "cash flow budgeting," and "cash flow forecasting." Each of these terms may be used with slightly differing connotations.
