ADDIS ABABA – The effective implementation of the Treasury Single Account (TSA) is expected to modernize the government’s financial management system and accelerate development efforts, said the Ministry of Finance (MoF).
Speaking at a consultative workshop jointly organized by the MoF and FSD Ethiopia under the theme “An Essential Tool for Government Cash Management,” MoF State Minister Eyob Tekalign (PhD) emphasized that TSA plays a crucial role in ensuring efficient utilization and monitoring of financial resources.
These include tax and non-tax revenues, donations, debts, and other funding sources, thereby contributing to a robust and effective financial ecosystem.
Beyond modernizing financial management, Eyob underscored that TSA would serve as a foundation for a fast, efficient, and transparent cash management system. It is also expected to alleviate the government’s debt burden by reducing short-term debt expenditures.
“The implementation of TSA will help eliminate idle balances and cash leakages, enhance budgetary control, and reduce government borrowing costs while improving revenue mobilization,” Eyob stated.
During the workshop, Fiscus LTD Consultant Bizuneh Bekele presented insights into how TSA can stabilize cash management by ensuring the availability of funds at the right time and place. He highlighted that TSA operates on core principles such as unity of cash, unity of treasury, and cash fungibility—key factors in preventing financial leakages.
Bizuneh also pointed out major cash management challenges, including persistent budget deficits, large sums of cash sitting idle in trust fund accounts, and improper classification of bank accounts.
Hailing the development of this initiative, FSD Ethiopia CEO Hikmet Abdella reaffirmed the organization’s commitment to advancing the nation’s financial sector by fostering innovation, inclusivity, and sustainability. She expressed optimism about the MoF’s efforts in implementing TSA to build a more transparent, efficient, and accountable financial system.
Hikmet also urged the ministry to continue modernizing Ethiopia’s financial infrastructure to further enhance the country’s economic stability and growth.
BY ASHENAFI ANIMUT
THE ETHIOPIAN HERALD FRIDAY 28 MARCH 2025
