Nigeria’s Minister of Finance, Mrs. Kemi Adeosun said over N2.2tn has so far been recovered from government agencies through the Treasury Single Account, TSA, which would assist in reducing the volume of borrowing needed to fund the 2016 budget.
Speaking at a workshop for the accountants-general of the states in Abuja, Mrs. Adeosun, explained that the TSA was an essential reform for any government wishing to pursue fiscal sustainability and prudent management of its resources.
Anxieties have mounted in government circles that the 2016 budget 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.
The budget President Muhammadu Buhari submitted to the National Assembly has a deficit of N2.2tn which is to be financed through the borrowing of N1.84tn made up of domestic borrowing of N984bn and foreign borrowing of N900bn.
Adeosun however believes that would increase accountability and transparency, improve the processing of payments and collections, and reduce borrowing costs.
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.
“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.”