Secretary to the Treasury Fredson Yamba says the implementation of the 2015 national budget took constitutional effect on January 1.
And Mr Yamba says a new payment system which will be implemented during the 2015 budget cycle is imbedded with benefits that will accrue immediately for suppliers of goods and services to the government.
Mr Yamba said following approval by parliament in December last year, the implementation of the 2015 national budget constitutionally commenced on January, 1, 2015.
Mr Yamba disclosed this in a statement released to media in Lusaka today by Ministry of Finance Public Relations Officer Chileshe Kandeta.
And Mr yamba said the commencement of the 2015 budget cycle also signals inauguration of the Treasury Single Account (TSA) System.
He said the TSA system is a unified structure of bank accounts which gives a consolidated position of government’s cash resources.
Mr Yamba said the TSA system aims to improve the government’s ability to efficiently manage public financial resources by refining the current payment proccess and eliminating redundant procedures between itself and clients.
He said the Ministry of Finance has established a system with the Bank of Zambia which will provide a reliable information exchange interface between the Integrated Financial Management System further stating that the system will be piloted at the Administration level in the Eastern province starting tomorrow on January, 5, 2015.
“The on-going public financial management reforms present an opportunity for strengthening procedures and processes in the budget cycle, including planning and budgeting, internal controls, procurement, debt management, accounting and evaluation. The TSA system is designed to streamline government bank accounts and introduce direct payments into suppliers accounts”, he stated.
Mr Yamba said the benefits of the TSA system include elimination of idle balances in commercial banks and reduction in the costs related to maintenance of numerous accounts.
Other benefits include improvement of cash analysis, reduction of unnecessary government borrowing through short term bridge financing and elimination of unethical practice of government borrowing its own money through treasury bills and bonds bought by Commercial Banks from Bank Of Zambia using governments idle balances.