OrderPaperToday – Contrary to widespread impression that monies in the Treasury Single Account (TSA) would form part of revenues to finance the 2016 budget, it has emerged that the N2.2 trillion includes expenditures of Ministries, Department and Agencies (MDAs) of the federal government.
In this regard, the Minister of Finance Kemi Adeosun has said that government will suspend all withdrawals by the MDAs from the account by the end of March.
Adeosun disclosed this on Tuesday while defending the budget of her ministry before the Senate Committee on Finance chaired by Sen. John Enoh (PDP, Cross River).
Adeosun who was responding to queries by the committee on the irregular balances in the TSA revealed that both income and expenditure occur daily on the account.
She however said the ministry was already working to determine what figures represented liabilities so as to know what will be brought forward to fund the 2016 budget.
According to her, “we are starting the process of drawing a line and March is the deadline. In March we will be able to make sure that we say to those agencies, of your balance in TSA how much is capital, how much is accumulated surplus of the past, how much is tied to liabilities.
“That process we have started and we are engaging with the agencies and from that we will be able to identify how much can now be used to fund the budget.
“But the TSA balances changes on a daily basis because of revenues and monies being paid out, so we are drawing a line.
“When the budget year closes then we will do a closing reconciliation, freeze any monies that are no longer available for them to spend and count as part of our funding for 2016.”
She confirmed that despite the fluid nature of the account, the balance stood at about N2.2 trillion, stressing that before the end of the financial year by March 2016, the ministry would have determined what amounts of the money is actually liability and what amount is available for public spending.
Adeosun also revealed that a lot of the aspects of the TSA would still undergo modifications to address specific needs, noting that the ministry was also harnessing all other possible revenue streams that can be accrued to fund the budget 2016.