Upon recognizing  how government banking arrangements are an important factor in managing and controlling government’s cash resources. Also knowing that they are critical for ensuring that (i) all tax and non-tax revenues are collected and payments are made correctly in a timely manner; and (ii) government cash balances are optimally managed to reduce borrowing costs (or to maximize returns on surplus cash). This is achieved by establishing a unified structure of government bank accounts via a treasury single account (TSA) system. Under the Treasury Single Account (TSA), government ministries, departments and agencies receive money from a single Treasury account on a quarterly basis

In these age and time of how things are done especially in Public Finance management, a TSA is a prerequisite for modern cash management and is an effective tool for the ministry of finance/the treasury to establish oversight and centralized control over government’s cash resources. And also to provides a number of other benefits thereby enhancing the overall effectiveness of a public financial management (PFM) system. The establishment of a TSA was, therefore, a priority as a PFM reform.

With effect from 1st October 2013, Government of Uganda (GoU) introduced a Treasury Single Account (TSA) in which all government cash balances are aggregated into a set of linked accounts. The primary objective of the TSA was to ensure management of GoU aggregate cash balances in order to: Minimize transaction costs during budget
execution; Ensure efficient control and monitoring of funds released to various Government agencies; and better coordination between fiscal and monetary policy implementation initiatives of government.

The operations of the TSA over the period under review were analysed, and it was noted that despite having challenges in the transition period, the implementation has been largely successful. It was noted that: the arrangement has led to the closure of a number of redundant accounts, which could have been avenues for misuse of funds; it has greatly improved treasury cash management; as at 30th June, 2014, cash is only available to entities which can absorb it; and it is envisaged that in subsequent years, borrowing from the domestic market will be greatly reduced.