Govt rolls-out Treasury Single Account in September

By SYLIVESTER DOMASA in Dodoma 

TANZANIA is set to officially roll-out the Treasury Single Account (TSA) in September, this year, as the State maintains that the strategy will ensure proper monitoring of government cash flows and reduce the cost of keeping public money in several commercial banks.

A section of Members of Parliament had called for more preparation time, but tabling the proposed Finance Act, 2018, Finance and Planning Minister, Dr Philip Mpango (pictured) said September 30 is the official date.

The Minister also rejected a plea from some lawmakers, who wanted the government to suspend its plans to amend the Cashew nut Industry Act (Cap 203) section 17A to allow all export levies to be collected in the consolidated fund.

He said, “The new legislation introduces a treasury single account in the Bank of Tanzania, which will be overseen by the Paymaster General.” “The account will be charged of collecting all money from the consolidated fund and make government payments,” he said.

“The account will ensure proper handling of government cash flows and reduce the number of accounts in commercial and central bank.” It will also reduce banking costs paid by the government for services landed by commercial banks, reduce gap in the consolidated fund by including monies in deposit account, which have not been included in calculation.

The new proposal, therefore, amends the Local Government Finance Act CAP 290, The Public Finance Act, CAP 348; and The Bank of Tanzania Act, CAP 197. Outspoken Kigoma North MP Zitto Kabwe (ACT Wazalendo) said should the new proposal go unchanged, it will contradict with the Constitution and make the Controller and Auditor General (CAG) redundant.

Delivering his submission where the National Assembly Speaker Job Ndugai had to give additional time to the lawmaker, Mr Kabwe saidsection 1 (36) of the Constitution of Tanzania of 1977, gives provision of all un-voted funds to be collected on the consolidated fund.

In addition he said section 143 (2) directs that all voted funds must have CAG approval. This means, he said, enacting the Finance Act 2018, will require amendment of the Public Audit Act, 2008, the Constitution and the Bank of Tanzania Act.

“Those changes will empower the CAG to perform his duty as per the constitution,” he said. “Otherwise we need more time and September 30 is not sufficient.” Minister in the Prime Minister’s Office responsible for Policy, Parliamentary Affairs, Labour, Employment, Youth and the Disabled, Ms Jenista Mhagama (pictured), had a different opinion however, saying the new amendment had considered legal fragmentations and does not breach the constitution.

Addressing the cashew nut tax controversy, the Kigoma North MP said the export levy charged by the Tanzania Revenue Authority (TRA) is farmers’ money. He explained that before the charges had reached 15 per cent, exporters were charged 3 per cent as agreed by farmers to help improve the commodity, however, TRA demanded payment to facilitate the process of charging the levy.

“It was agreed that TRA takes 35 per cent and the remaining goes to farmers. I suggest the government would have opted for the largest share -- 65 per cent and give farmers 35 per cent, but not to take the whole 100 per cent,” he said.

The Parliamentary Budget Committee said in its opinion it suggested the government to seek opinion from stakeholders on the best approach as the money remains for cashew nut growers.