Minister of Finance Kemi Adeosun has disclosed that the federal government has a balance of N2.2 trillion in the Single Treasury Account on a daily basis and that work is ongoing within The Treasury, to determine how much of these funds can potentially be utilised to part fund the 2016 budget and how much relates to pending commitments to reduce the amount to be borrowed.
The minister who spoke while delivering a keynote address at a one day Treasury Single Account workshop for the states Accountant General in Abuja on TSA, disclosed that “TSA at Federal level has allowed, for the first time, visibility of the total quantity of government funds at any point in time” and that it “has provided us with financial information on the revenues of agencies funded by government and has reduced revenue suppression.
Addison said that TSA has eliminated opportunities for brokerage and other corrupt practices that previously encouraged agencies to accumulate funds with commercial banks rather than apply them to their intended uses.
“We believe that this will reduce payment delays to contractors, minimise late payment penalties and will consequently improve project completion times and service delivery,” adding that TSA has corrected the practice of government borrowing short term funds at high rates of interest, whilst simultaneously having idle funds in various bank accounts.
She expressed the hope that the workshop will dwell further on current issues and challenges surrounding Cash Flow Management with a view to ensure scarce resources at the disposal of Federal, State and Local Governments are prudently and efficiently managed.
Describing the timing of the workshop as apt and timely especially at a time when the global economic downturn is creating challenges that demand efficient and effective management of cash resources, Adeosun said that the global economic challenges demand optimum efficiency in the management of public funds.
“These objectives require an overhaul of the financial management approaches adopted to meet financial obligations on time and ensure that cost effective financial support is provided to public institutions.”
The minister urged the participants to also discuss and brainstorm on ways and means of improving the revenue base of the country through full implementation of TSA and blocking of all leakages and improving the efficiency of revenue administration.
“The revenue base of the country is still low and its administration still leaves room for improvement. This is bedevilled with a range of problems such as poor computerization, lack of skilled and dedicated employees, corruption, lack of awareness and of course unpatriotic conduct by some of the operators.
“This clearly indicates that the underlying assumptions underpinning the 2016 budget may only be realised with serious efforts put in place towards revenue efficiencies and expenditure discipline such as implementation of the TSA and Cash Management concepts by all tiers of government.
“Therefore, I commend the efforts of the OAGF and organisers for hosting this very important workshop aimed at sensitizing the States Accountants-General on the need to key into the Treasury Single Account scheme of the Federal Government.
“I also wish to thank IMF (FAD Mission) for partnering with Federation Account Allocation Committee (FAAC) in this noble initiative. I may also emphasis that timing of this workshop cannot be more auspicious than now when the present Administration of His Excellency, Muhammadu Buhari, GCFR the President of the Federal Republic of Nigeria is vigorously pursuing the war against corruption.
“As professionals in charge of Public Financial Management of your respective states, the ball is in your court and l hope you will take advantage of this workshop to clarify issues that have agitated your minds regarding the implementation of TSA. TSA will no doubt enables you to block all financial leakages and conserve more funds needed fordevelopment in your various States.
“I am also aware that some states are already implementing TSA. I urge those states to kindly share their experiences with the rest of you so as to encourage those who are yet to decide to take their first step in this direction.
“At the Federal Level, l can assure you that our experience has been worthwhile. TSA has Provided complete and timely information on government cash resources, Improved operational control on budget execution, enabled efficient cash management, reduced bank fees and transaction costs, facilitated efficient payment mechanisms and it has also reduced the FGN Ways and Means requirement to bridge the budget funding gap.”
Follow Us