Govt considers new policy to track public spending
Plans are underway by the Federal Government to activate another public finance management process to track public spending.
The initiative is being moulded after the Integrated Financial Management Information System (GIFMIS) and Treasury Single Account (TSA).
Known as ‘Bottom-Up Cash Planning Policy’, Office of Accountant General of the Federation (OAGF) has issued a treasury circular, notifying Ministries Departments and Agencies (MDAs) of the “Go Live” February 10, 2023 date.
Speaking on the sensitisation training in Abuja, yesterday, Acting Accountant General of the Federation, Sylva Okolieaboh, explained that the policy involves collection and aggregation of government cash needs through individual spending units.
He said as part of the government’s overall cash management arrangement, bottom-up cash planning facilitates optimal allocation and utilisation of cash resources.
“The overriding objective of cash management is to ensure that government is able to fund its expenditure in a timely manner and meet its obligations as and when due,” Okolieaboh added.
According to him, the other objectives include minimising costs of holding cash balances, reducing risk (operational, credit and market risk) and flexibility to the ways in which the timing of government cash inflows and outflows can be matched.
Indeed, the flag-off has been in the making since 2009 when the Federal Government initiated a feasibility study to determine best strategies to address its cash management challenges as part of the Public Financial Management (PFM) reforms.
“Unfortunately, that process has witnessed many unforeseen delays over 10 years of hiatus, but fortunately, today, we are witnessing its actualization,” the AGF stated.