Q FM Africa's Modern Radio
Government has commenced the implementation of the 2015 national budget that was approved by Parliament in December last year.
In a statement to Qfm News Secretary to the Treasury Fredson Yamba has said following approval by Parliament in December, 2014, the implementation of the 2015 National Budget constitutionally commenced on 1st January, 2015.
Mr. Yamba say the commencement of the 2015 Budget Cycle also signals inauguration of the Treasury Single Account (TSA) System which is a unified structure of bank accounts that gives a consolidated position of Government’s cash resources.
Mr. Yamba states that the TSA System aims to improve the Government’s ability to efficiently and effectively manage public financial resources by refining current payments processes, and eliminating redundant procedures between itself and its clients.
Fredson Yamba
He says in order to ensure the success of the TSA System, the Ministry of Finance has established a high-tech VPN-Link to Bank of Zambia, which will provide a reliable and real-time information exchange interface between the Integrated Financial Management System (IFMIS) at the Ministry and the Real Time Gross Settlement System hosted by the Bank of Zambia.
Mr. Yamba has disclosed that the TSA system will initially be piloted at the Ministry of Finance and at the Provincial Administration in Eastern Province starting tomorrow, Monday the 5th of January.
He says all other Ministries, Provinces and Government Spending Agencies will be assimilated by the 31st of December this year.
The Secretary to the Treasury further notes that the ongoing Public Financial Management (PFM) Reforms also present an opportunity for strengthening procedures and processes in the budget cycle; including planning and budgeting, internal controls, procurement, debt management, accounting and reporting, and monitoring and evaluation.
He says the TSA System is thus designed to streamline Government bank accounts and introduce direct payments into supplier’s accounts.
Mr. Yamba states that the major benefits of the TSA System are Elimination of idle balances in commercial banks and reduction in the costs related to maintenance of numerous accounts in each MPSA and to Improve cash analysis, reduce unnecessary Government borrowing through short-term bridge financing and eliminate unethical practice of Government borrowing its own money through treasury bills and bonds bought by Commercial Banks from BOZ using Government’s idle balances.
He says other of the TSA system are the facilitation of planning and improvement of operational control and efficiency during budget implementation in an efficient and effective manner; and to bring about Efficient transmission of authorized payments from MPSA’s to BOZ for settlement via the RTGS System.
This is contained in a statement released to Qfm News by Ministry of Finance Public Relations Officer Chileshe Kandeta.