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Union Finance Secretary T V Somanathan said the Centre had saved Rs 10,000 crore in FY22 on interest payments after adopting new accounting mechanisms for central government agencies and centrally sponsored schemes (CSS) for state governments. Due to these, there was an unspent balance of Rs 1.2 trillion with state agencies from CSS as on March 31, 2022. This means this amount will be reduced from the Centre’s borrowing for now and it can be considered a short-term saving for the exchequer. The new accounting mechanisms in the Public Finance Management System are: • Treasury Single Account (TSA) for central government agencies and autonomous bodies • Single Nodal Agency (SNA) for distributing CSS funds to states A Treasury Single Account (TSA) is a unified structure of government bank accounts that aims to consolidate and optimize the use of Government cash resources.
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