Gov’t hastens implementation of Treasury Single Account

MANILA, Philippines - The government will speed up the implementation of the  treasury single  account (TSA), a unified structure of government bank accounts that will allow greater cash management.

Finance Secretary Cesar Purisima said the Aquino administration hopes to operationalize the TSA as soon as possible to ensure that government cash balances are optimally managed to reduce borrowing costs.

The government, he said, would save P1.5 billion from the TSA, which is considered an effective tool in establishing oversight and centralized control over government’s cash resources.

A TSA will provide accurate and timely information on bank account balances, revenue and cash positions of the government including its line agencies.  It also facilitates better fiscal, debt management and monetary policy coordination.

It ensures systematic recording and reporting of all liabilities of government entities including real and contingent liabilities to enable the national government to manage its financial exposure.

“We will initially include five of the biggest GOCCs (government-owned corporations) and eventually expand its diverge,” Purisima said.

The TSA forms part of the government’s public financial management reform program, which seeks to simplify, improve and harmonize the financial management processes and information systems of the public sector as well as reengineer and integrate in the relevant systems in the  Department of Budget and Management, Commission on Audit, Department of Finance and implementing agencies.