| 4. In which ways is the initiative creative and innovative?
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As per the available information, TSA has not been adopted by many countries. With the rapid development of ICT in early 20’s, TSA concept also gained popularity and several countries started to implement the system. Recently, in 2009, Nepal embraced this concept and successfully completed its pilot testing in two district. Then up-to 2012 the coverage expanded to all the districts.
This initiative is creative and innovative in itself as the GoN has made many homemade customizations to the system to suit the country’s need and preferences. First, available planning systems (Budget Management Information System and Line Ministry Budget Management Information System) are linked to the TSA system for better budget execution and analysis. Second, TSA system is designed to record disaggregated level of data. For example, the disaggregation categories include project, COFOG, gender friendly, climate adaptive, GFS code, ministry, source of fund level financial transaction information. Third, many new modules are being designed and embedded into the current TSA system such as e-payment, CGAS (Customized Government Account System), commitment recording and so on.
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| 5. Who implemented the initiative and what is the size of the population affected by this initiative?
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Financial Comptroller General Office has initiated the implementation of TSA system with due consultation and coordination with concerned stakeholders. In this process, MoF - the parent organization of FCGO - provided guiding direction and assistance in developing and implementing TSA system with necessary resources and policy framework while the World Bank and other development partners provided both financial and technical assistance through MDTF (multi-donor trust fund) under SPFM-I (strengthening public financial management – I) project.
The TSA system has the nationwide coverage as it has been implemented in all 75 districts. A large number of population is being benefited (both direct and indirect way) thorough the full-fledge implementation and continuous improvement of the system.
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| 6. How was the strategy implemented and what resources were mobilized?
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Firstly, the online based TSA system was developed and linked with existing DECS (District Expenditure Control System) of FCGO. For its implementation FCGO has developed a rollout plan and started to implement from two of the adjourning districts of capital city (Kathmandu Valley). The District Treasury Comptroller Offices (DTCO's) of these two districts; Lalitpur and Bhaktapur, has been piloted the TSA system in F/Y 2009/10. With the successful piloting in these two districts, FCGO has expanded this system in additional 20 districts in F/Y 2010/11, in additional 16 districts in F/Y 2011/12 and remaining districts in F/Y 2012/13.
To implement the TSA effectively SPFM-I project has been designed and implemented with the support of World Bank, which coordinated the support of seven multiple donors of Nepal in a single platform in the name of MDTF Trust Fund.
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| 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
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The following stakeholders were involved in the various stages of the TSA system design and implementation phase. Still these institutions and persons are being involved directly or indirectly;
• Ministry of Finance
• FCGO and its field offices (DTCO's)
• Line ministries, Departments and other spending offices
• Central Bank and other commercial banks
• PFM Specialists
• IT experts.
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| 8. What were the most successful outputs and why was the initiative effective?
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Implementation of TSA contributed significantly for the overall management of government's expenditure and revenue. It has provided the prominent solution of the problems being faced before its implementation. The most successful output it has provided, regarding government financial transaction is the effective treasury management system in the country. Improved accuracy and reliability of financial information, real time data availability on budget expenditures and revenue receipt, availability of treasury position and informed decision making and policy design has been possible through its implementation.
This initiative becomes effective for governments treasury management due to its completeness and execution throughout the country in a unified, single and simple way. The associated cost for treasury management has significantly decreased and cash management become easier for the decision maker. The government's commitment for effective fiscal governance has been possible through this system. The concerned departments could monitor the budget release, expenditure, revenue collection and other fiscal transactions through this system.
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| 9. What were the main obstacles encountered and how were they overcome?
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Firstly, the unavailability of PFM and ICT experts to develop the system was faced. When the system has developed and the government decides for its implementation, then to convince the concerned authorities and stakeholder was another challenge. Furthermore, the weak web connectivity, network problem, power shortage, availability of IT equipment, institutional and personal capacity constraints and motivational factor to PFM staffs were main constraints.
To overcome these constraints, SPFM project has been developed, in which TSA implementation was one of the major component. This project contributed to supply the required PFM and ICT expert, IT equipments, web connectivity strengthening, train the concerned PFM staffs and provisioned for power backups as required. To incentivize the PFM staffs directly involved in TSA implementation, the government has provisioned performance based incentive system (PBIS).
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