The minister, in a keynote address today at a one-day workshop for State Accountants-General on TSA which was held in the office of the Accountant-General of Nigeria, Abuja said that TSA at Federal Level, has allowed, for the first time, visibility of the total quantity of government funds at any point in time.
The minister said that the TSA has allowed for balance, which changes daily as MDA’s 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, Mrs. Adeosun said, has provided the government with financial information on the revenues of agencies funded by government and has reduced revenue suppression.
She said that such information is being used to drive the government’s programme to enforce compliance with the Fiscal Responsibility Act and ensure that Revenue Generating Agencies generate expected surpluses and remit to the Federal Purse.
The minister added that TSA has also 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.”
She noted that the global economic challenges which are affecting Nigeria necessitated optimum efficiency in the management of public funds, saying that 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.
Adeosun described TSA as an essential reform for any government wishing to pursue fiscal sustainability and prudent management of its resources which she said, increases accountability and transparency, improves the processing of payments and collections and reduces borrowing costs.
“I therefore urge the participants for this workshop 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 realized 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.”
The minister charged the professionals in charge of Public Financial Management of the states to take advantage of the workshop to clarify issues that have agitated their minds regarding the implementation of TSA.
“TSA will no doubt enables you to block all financial leakages and conserve more funds needed for development 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.
Mrs. Adeosun was elated to know that the workshop has been put together with a view of fashioning out ways of improving the efficiency of the nation’s scarce resources.
This was even as she asked the participants to interact freely and share ideas that would improve transparency and accountability in the management of the nation’s scarce resources. [myad]
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