Effect Of Treasury Single Account On Government Expenditure And Borrowing: An Empirical Study

The study assessed the effect of the Treasury Single Account (TSA) policy of the Federal Government of Nigeria based on whether the policy has ensured cash availability to meet Government expenditure and whether also the policy has in any way promoted efficiency in the management of national debt. Secondary data on Federal Government Revenue, Spending, and Borrowing were sourced from the Central Bank of Nigeria's Statistical bulletin and Debt Management Office quarterly reports. Chow test was deployed to test the formulated hypothesis. Findings showed that the implementation of TSA has achieved the objective of ensuring cash availability for government expenditure programmes. The implication of this is that government cash resources have increased and there are now more funds available for Government to carry out its various responsibilities towards improving the quality of life of citizens. It was also found that the TSA policy of the government has some impact on the nation's debt profile. The study is considered very important as it reveals to the government how the TSA policy is capable of blocking revenue leakages and promoting the availability of government cash resources. The study has contributed to the existing literature by showing that TSA has a significant impact on the availability of cash resources to the government. In practice, it has been shown that bringing the cash resources into one basket and eliminating multiple bank accounts enables the government to see the total resources at a glance, which helps it to decide whether to borrow or not.