THE TREASURY SINGLE ACCOUNT AND ITS IMPACT ON CORRUPTION, TRANSPARENCY, ACCOUNTABILITY, FINANCIAL DISCIPLINE, THE BANKING SECTOR, AND ECONOMIC DEVELOPMENT

Abstract

Purpose- The Government of Pakistan now has many treasury accounts in various commercial banks, leading to a deficiency in consolidated financial information. The lack of integrated information forces the government to undertake unnecessary borrowing, hindering the identification of fraudulent activities. The Treasury Single Account (TSA) is being internationally deployed to address these difficulties. This study examined the possible impacts of the Treasury Single Account on corruption, transparency and accountability, financial discipline, banking sector performance, and economic development.

Study design/methodology/approach-

The research style is descriptive, employing cross-sectional data collected from 100 respondents, predominantly treasury officers and managers at various banks, via a convenience sample procedure.  Structured questionnaires have been employed to gather primary data.

Findings- Our findings indicate that TSA significantly mitigates corruption, fosters openness and accountability, improves financial discipline, decreases banks deposits and profits, and bolsters economic development.

Originality/value- The study's findings hold considerable importance for governments and policymakers to comprehend the advantages that TSA may confer on Pakistan's economy and its impact on several other elements. This study will assist banks in comprehending the effect of TSA on their deposits.