It creates a liability on our balance sheet as it is money the Government can draw on. When the Government receives taxes, or sells a bond or bill, it produces an inflow into its bank account. Conversely, payments of welfare benefits, interest on Government bonds or repaying the principal of a bond as it matures, produces outflows from the CSA.
Before COVID-19, the CSA typically had a positive balance up to $ billion to manage the Crown’s cash flows.There was an overdraft facility available up to $ billion, which has primarily been used by the Crown under normal circumstances to help manage very short-term mismatches created by large Crown cash flows, such as around a bond maturity.