Treasury Single Account: Concept, Design and Implementation Issues
IMF Working Papers, June 1, 2010
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Bibliographic details
- Authors: Israel Fainboim Yaker, Sailendra Pattanayak
- Published: June 1, 2010
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455201266.001
Summary
- A treasury single account (TSA) is an essential tool for consolidating and managing governments’ cash resources, thus minimizing borrowing costs.
- In countries with fragmented government banking arrangements, the establishment of a TSA should receive priority in the public financial management reform agenda.
- Drawing on the lessons of the Fund’s work in several countries in establishing a TSA, this paper explains its concept, essential features, and potential benefits.
- The paper presents alternative models and approaches for designing a TSA that take into account specific country contexts as well as the preconditions and desirable sequencing for its successful implementation.
- The paper includes country examples from different regions in support of the analysis and recommendations.
Key concepts and potential benefits
- TSA concept: consolidation and management of government cash resources through a unified account structure.
- Primary benefit highlighted: minimizing borrowing costs by centralizing cash balances.
- Other implied benefits: improved cash management, reduced fragmentation of government banking arrangements, and enhanced public financial management.
Design alternatives and implementation sequencing
- The paper presents alternative TSA models and approaches adaptable to specific country contexts.
- Emphasis on assessing country-specific preconditions before implementation.
- Desirable sequencing for successful implementation is discussed (details provided in the full paper).
Country examples and empirical foundations
- The analysis and recommendations are supported by country examples from different regions, drawing on the Fund’s hands-on experience in establishing TSAs.