Q. In the context of government cash flow management, the Just-in-Time (JIT) mechanism refers to:

[A] Maximizing cash reserves by delaying payments.

[B] Ensuring funds are released only when required.

[C] Increasing fiscal surplus by cutting down on planned expenditures.

[D] Enhancing liquidity by borrowing funds in advance.

Answer: B
Notes:

Explanation – In the context of government cash flow management, the Just-in-Time (JIT) mechanism ensures that funds are disbursed or released only at the point when they are needed for expenditure. This minimizes idle cash balances, optimizes resource utilization, and prevents funds from sitting unused in accounts. It is a strategy to improve efficiency in public financial management.

Source: DD News

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