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Global economy recession affecting our nation- Adeosun

Minister of finance, Kemi Adeosun

The global economic challenges which are affecting our nation demand
optimum efficiency in the management of public funds. Mininister of Finance, Mrs. Kemi Adeosun stated this today at a workshop in Abuja on TSA concept.

Minister of finance, Kemi Adeosun

Minister of finance, Kemi Adeosun

She said TSA 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 muuch has been reported and debated about the merits of TSA and the impact on the financiautonomy of the various arms of government and on the profitability of commercial banks.

She maintained that essential reform for any government wishing to pursue fiscal sustainability and prudent management of its resources, it is imperative for such government to increase its accountability and transparency, improves the processing of payments and collections and reduces borrowing costs.

Some of the benefits of TSA renumerated by the Miniser includes: visibility of
the total quantity of government funds at any point in time, the balance, which changes daily as MDA’s remit revenues and make payments, according to the latest reports from CBN exceeds N2.2 Trillion, provision of financial information on the revenues of agencies funded by government reduction of revenue suppression.

Adeosun stated further 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. It is expected that this will reduce payment delays to contractors, minimise late payment penalties and will consequently improve project completion times and service delivery.

The Minister encourage participants at the workshop to 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.

She affirm that the country’s revenue base of is still low and the present administration leaves room for improvement. This according to her 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.”

The Minister commend the efforts organisers for hosting such an important workshop aimed at sensitizing the States Accountants-General on the need to key into the Treasury Single Account scheme of the Federal Government.

Her words “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”.

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