Public Sector Governance and Accountability Series: Budgeting and ...

Budget Execution 311
Case 1. Payment through centralized treasury
Check
Spending
agency
Payment
order
Treasury
Transfer
Banking
system
Supplier
Case 2. Payment through spending agencies’ bank accounts
Spending
agency
Banking
system
Supplier
Clearance
Ceilings
Treasury
Case 3. Payment through imprest system
Spending
agency
Banking
system
Supplier
1. Previous
period’s statement
2. Request for
imprest advance
Transfer
of funds
Treasury
Source: Adapted from Allen and Tommasi 2001.
FIGURE 9.2 Three Payment Systems
them are sent to the treasury, which controls them and plans their
payment. The treasury manages the float of outstanding invoices. 14
—Centralization of payment transactions and “passive” treasury single
account. Payments are made directly by spending agencies, but through
a TSA. The treasury, through the budget implementation plan and a
warrant system, sets periodic cash limits for the total amount of transactions
but does not control individual transactions. 15
Centralization of cash balances only. 16 This type of TSA is illustrated
by case 2 in figure 9.2. In such cases, the TSA is organized along the
following lines:
—Line ministries hold accounts at the central bank that are subsidiary
accounts of the treasury’s account, and spending agencies hold
accounts either at the central bank or with commercial banks that must
be authorized by the treasury.