*Says Daily Balance Exceeds N2.2 trn
Minister of Finance Mrs. Kemi Adeosun, on Monday disclosed that funds from the Treasury Single Account (TSA) can potentially be utilised to part fund the 2016 budget.
The minister who disclosed this while delivering a keynote address at a one day TSA workshop for the states Accountants-General in Abuja, added that the federal government has a balance of N2.2 trillion in the Single Treasury Account on a daily basis.
In her address, Adeosun, while reiterating some of the key benefits of TSA that has been recorded to date, said that at Federal Level, the TSA has for the first time allowed visibility of the total quantity of government funds at any point in time.
A statement issued by her special adviser on Media, Festus Akanbi read, “The 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”
Speaking on other benefits of the TSA, the minister said “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.”