The recent report by the Asian Development Bank (ADB) has once again highlighted a longstanding weakness in Bangladesh's public financial management. According to the report, nearly 19,000 government bank accounts exist outside the Treasury Single Account (TSA), leaving a significant portion of public funds scattered across different institutions instead of being centrally managed.
This fragmented system creates an inefficient cash management framework. While many of these accounts may hold surplus balances, the government's main treasury account can simultaneously experience liquidity shortages. As a result, the government often has to borrow from commercial banks or external sources to meet its financing needs, despite having idle public funds elsewhere within the system.
Such unnecessary borrowing carries broader macroeconomic consequences. Increased government borrowing from commercial banks can reduce the availability of credit for the private sector, potentially slowing business investment, employment generation, and overall economic growth. In other words, inefficient public cash management may indirectly crowd out private sector financing.
A fully operational Treasury Single Account would help address this challenge by consolidating government cash resources into a unified framework. This would enable better cash visibility, reduce idle balances, improve liquidity management, lower borrowing costs, and strengthen fiscal discipline. Many countries have already implemented TSA systems successfully and have benefited from more efficient public financial management and reduced financing costs.
For Bangladesh, implementing a comprehensive Treasury Single Account is no longer merely an administrative reform, it is an economic necessity. Consolidating government funds under a single treasury framework would optimise the use of public resources, reduce dependence on costly borrowing, and enhance the efficiency of fiscal operations.
As Bangladesh continues its journey toward stronger public financial governance, accelerating the full implementation of the Treasury Single Account should become a national priority. Better cash management today will contribute to a more resilient and efficient economy tomorrow.
Md. Zakaria
FAVP & Credit Risk Analyst
CRM-CMSME Division, NCC Bank PLC, Head Office
