The Federal Government is planning to reduce the amount of borrowing
needed to fund the 2016 budget from funds mopped up from government
agencies through the implementation of the Treasury Single Account.
The 2016 budget, which has been submitted by President Muhammadu Bubari to the National Assembly, has a deficit of N2.2tn.
The
deficit, according to the fiscal document, is to be financed through
the borrowing of N1.84tn made up of domestic borrowing of N984bn and
foreign borrowing of N900bn.
There are anxiety in government
circles that the deficit may rise to about N3tn as a result of the
global drop in oil price, which is currently selling below the $38 per
barrel budget benchmark price.
But speaking on Monday at a
workshop on TSA for the accountants-general of the states in Abuja, the
Minister of Finance, Mrs. Kemi Adeosun, said the over N2.2tn, which has
so far been recovered from government agencies through the TSA, would
assist in reducing the volume of borrowing.
She said the current
issues and challenges surrounding cash flow management had re-enforced
the need to ensure that scarce resources at the disposal of the federal,
state and local governments were prudently and efficiently managed.
Adeosun
described the workshop as apt and timely, as it came at a time when the
global economic downturn was creating challenges that demanded
efficient and effective management of cash resources.
She
explained that the TSA was an essential reform for any government
wishing to pursue fiscal sustainability and prudent management of its
resources.
Outlining some of the benefits of the TSA, the
minister said it would increase accountability and transparency, improve
the processing of payments and collections, and reduce borrowing costs.
Adeosun
said, “The global economic challenges, which are affecting our nation,
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.”
Source:http://www.punchng.com/fg-to-cut-n1-84tn-borrowing-through-tsa-recovery/
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