Second phase of unified treasury account project underway

The Sultanate of Oman, represented by the Ministry of Finance, is implementing a Treasury Single Account (TSA) project to improve the management of government cash resources. The project is being rolled out in three phases, with the first phase set for completion in 2023.

In the first phase, TSA implementation covered the Ministry of Labour and the Tax Authority, according to details shared by the Ministry of Finance. This resulted in the collection of 37% of the state's general revenues being deposited into the TSA, and the consolidation of 90% of government bank accounts. The project also met 95% of its targets for the first phase.

The second phase of the TSA project is currently underway and includes the Ministry of Health, the Ministry of Education, and the Royal Oman Police. The third and final phase will see the TSA rolled out to all government units and agencies.

The implementation of the TSA is expected to have a number of financial and economic benefits for the Sultanate of Oman. These include: Improved cash liquidity management: The TSA will give the government a more consolidated view of its cash resources, which will help to improve cash flow forecasting and management. This can lead to savings in interest costs and a more efficient use of government funds.

Increased transparency and accountability: The TSA will make it easier to track government spending, which can help to improve transparency and accountability. This can also help to deter corruption.

Reduced borrowing: By improving the management of its cash resources, the government may be able to reduce its reliance on borrowing. This can help to improve the country's fiscal position and credit rating.

The TSA is a significant undertaking, but it has the potential to deliver major benefits for the Sultanate of Oman, says the Ministry of Finance. In addition to the financial and economic benefits, the TSA project is also expected to have a number of other benefits, such as: Increased efficiency: The TSA will streamline the government's payment and collection processes, which can lead to efficiency gains.

Improved risk management: The TSA will help the government to better manage its financial risks, such as the risk of fraud and theft.

Enhanced governance: The TSA will strengthen the government's financial governance framework, which can help to improve accountability and transparency.