Treasury Single Account And Financial Discipline: A Causality Analysis

Government revenue is the most critical variable that determines the level of expenditure, investment and growth of the economy. This study assessed the pre government revenue and the post government revenue generation outcomes using Treasury Single Account’s effective year of implementation as the baseline in Nigeria. The study sought to assess whether or not government revenue had changed significantly on the adoption of TSA. To drive this objective, government revenues were collated for 2010 – 2014 (pre TSA) and 2015-2019 (post TSA) from the Statistical Bulletin of the Central Bank of Nigeria. The study applied the paired sampled t-test to determine whether or not government revenue had increased significantly in the post TSA years of adoption. Findings showed that there is a significant increase in government revenue after the adoption of TSA in Nigeria. Following this finding, the study recommended that internal control system should be strengthened in government Ministries and Parastatals to forestall revenue leakages, and that public servants should be properly trained on the efficient application of TAS software. Also, the federal government should put in place Budget Monitoring Group to constantly monitor revenue targets and control expenditure limits.