The Federal Government of Nigeria has made known its plans 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.
State to cut N1.84tn borrowing from TSA
The Treasury Single Account is an anti-corruption innovation that would increase accountability and transparency, improve the processing of payments and collections, and reduce borrowing costs
Currently, the 2016 budget submitted by President Muhammadu Buhari has a deficit of N2.2tn.
The deficit is to be realised be financed through the borrowing of N1.84tn made up of domestic borrowing of N984bn and foreign borrowing of N900bn.
Due to the global fall in oil price, there are concerns that the deficit may rise to the tune of N3tn at a Benchmark of $38 per barrel.
Speaking at a TSA workshop, 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.
“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”, she said.
The Treasury Single Account is an anti-corruption innovation that would increase accountability and transparency, improve the processing of payments and collections, and reduce borrowing costs.
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