Minister of Finance, Mrs. Kemi Adeosun, today hinted that recoveries from the on-going implementation of the Treasury Single Account (TSA) scheme may reduce the amount to be borrowed for the 2016 Budget. She dropped the hint in a keynote address delivered at a one-day workshop for states accountants-general held at the Conference Hall of the Office of the Accountant-General of the Federation, Abuja.

Mrs. Adeosun told the participants that the Federal Government’s experience with TSA has been worthwhile. Quoting the latest reports from the Central Bank of Nigeria (CBN), she said that savings from the TSA so far exceeds N2.2 trillion. “I can report that work is now 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. This, of course, will reduce the amount to be borrowed,” the minister said.

“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,” she further said.

The minister described TSA as “an essential reform for any government wishing to pursue fiscal sustainability and prudent management of its resources,” as “it increases accountability and transparency, improves the processing of payments and collections and reduces borrowing costs.”

On the key benefits of TSA so far recorded by the Federal Government, she said:

•TSA at Federal Level has allowed, for the first time, visibility of the total quantity of government funds at any point in time.

•The balance, which changes daily as MDAs remit revenues and make payments, according to the latest reports from CBN exceeds N2.2 Trillion. I can report that work is now 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. This, of course, will reduce the amount to be borrowed.

•The TSA has provided us with financial information on the revenues of agencies funded by government and has reduced revenue suppression. This information is being used to drive our programme to enforce compliance with the Fiscal Responsibility Act and ensure that Revenue Generating Agencies generate expected surpluses and remit to the Federal Purse.

•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.

•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.

•By reducing the number of accounts in operation, monitoring and control has significantly improved.

Mrs. Adeosun noted that 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 computerisation, 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,” she said.

•Photo shows Kemi Adeosun.