The application of the Economic and Financial Assistance Program in 2011-2014 created the need to ensure compliance with the budgetary targets, making monitoring the budget and public deficits critical elements involved in the process. In that context, Municipal debt control becomes a fundamental part of that consolidation. This paper is based on the study of the direct impact of cash management in reducing Portuguese municipal deficits. The practice of an efficient cash management through good funding policies, reduction of average time for payment and debts to suppliers resulting in an improved liquidity and ability to meet obligations, contributing to an overall improvement in the municipal situation. The analysis of the budgetary situation of Portuguese municipalities reveals different situations, albeit globally, in the four year period under analysis, there is a correction of the unbalances.