Treasury Single Account project to cover 57 Omani govt entities
Effective oversight: Ministry of Finance pilots unified scheme through Ministry of Labour, Tax Authority
Published: 03:05 PM,May 09,2022 | EDITED : 07:05 PM,May 09,2022
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The Treasury Single Account (TSA) project, one of several financial management initiatives launched by the Omani government to streamline the handling of public finances, has been piloted thus far through two key entities: Ministry of Labour and the Tax Authority, according to the Ministry of Finance, which is overseeing the rollout of this far-reaching scheme.
When eventually implemented, the scheme will cover as many as 57 government ministries and departments, effectively elevating the Sultanate of Oman into the ranks of modern economies that have embraced the TSA model to ensure prudence and probity in the management of financial resources.
Initiated pursuant to the Ministry’s circular 18/2020, the Treasury Single Account (TSA) is described as a unified structure of government bank accounts dealing with public revenue and expenditure on a daily basis – a move that allows for the optimal use of government cash resources.
Besides enhancing the efficiency of public cash management by enabling the utilisation of unused funds, it also helps improves the monitoring of the implementation of the State Budget, notably by providing accurate information on revenue and expenditure. Additionally, the unified account structure helps reduce banking fees and the cost of transactions typically associated with the operation of multiple accounts.
According to the Ministry, the introduction of a Treasury Single Account helps achieve four overarching goals: The unified account structure consolidates government cash balances and enables monitoring of cash flows; It ensures that government cash balances are optimally managed to reduce short-term borrowing costs; It enhances treasury management and improves cash flow forecasting capabilities; and importantly, it augments transparency by providing oversight of budgeted revenue and expenses.
The recent launch of the pilot follows the successful completion of a number of pre-launch phases, notably a study to ensure that the Omani TSA model is benchmarked to international standards. A full-fledged rollout, covering all government departments, is envisioned upon the completion of the evaluation of the pilot phase, the Ministry noted.
Significantly, the TSA initiative is a key component of a newly deployed Government Financial System, dubbed ‘Maliyah’. Described as a modern system for managing public finance, use of the Maliyah system is mandatory for government departments when planning, implementing, controlling and reporting on the State Budget. It provides accurate, reliable, timely and consistent financial information that enables financial and economic decision-makers to enact policies, formulate strategies and take effective decisions in line with the country’s economic diversification and financial sustainability principles. Maliyah is also underpinned by a modern financial accounting and reporting system.
The Treasury Single Account (TSA) project, one of several financial management initiatives launched by the Omani government to streamline the handling of public finances, has been piloted thus far through two key entities: Ministry of Labour and the Tax Authority, according to the Ministry of Finance, which is overseeing the rollout of this far-reaching scheme.
When eventually implemented, the scheme will cover as many as 57 government ministries and departments, effectively elevating the Sultanate of Oman into the ranks of modern economies that have embraced the TSA model to ensure prudence and probity in the management of financial resources.
Initiated pursuant to the Ministry’s circular 18/2020, the Treasury Single Account (TSA) is described as a unified structure of government bank accounts dealing with public revenue and expenditure on a daily basis – a move that allows for the optimal use of government cash resources.
Besides enhancing the efficiency of public cash management by enabling the utilisation of unused funds, it also helps improves the monitoring of the implementation of the State Budget, notably by providing accurate information on revenue and expenditure. Additionally, the unified account structure helps reduce banking fees and the cost of transactions typically associated with the operation of multiple accounts.
According to the Ministry, the introduction of a Treasury Single Account helps achieve four overarching goals: The unified account structure consolidates government cash balances and enables monitoring of cash flows; It ensures that government cash balances are optimally managed to reduce short-term borrowing costs; It enhances treasury management and improves cash flow forecasting capabilities; and importantly, it augments transparency by providing oversight of budgeted revenue and expenses.
The recent launch of the pilot follows the successful completion of a number of pre-launch phases, notably a study to ensure that the Omani TSA model is benchmarked to international standards. A full-fledged rollout, covering all government departments, is envisioned upon the completion of the evaluation of the pilot phase, the Ministry noted.
Significantly, the TSA initiative is a key component of a newly deployed Government Financial System, dubbed ‘Maliyah’. Described as a modern system for managing public finance, use of the Maliyah system is mandatory for government departments when planning, implementing, controlling and reporting on the State Budget. It provides accurate, reliable, timely and consistent financial information that enables financial and economic decision-makers to enact policies, formulate strategies and take effective decisions in line with the country’s economic diversification and financial sustainability principles. Maliyah is also underpinned by a modern financial accounting and reporting system.