via Zimbabwe fiscal deficit continues to spiral at Treasury ZimbabweMail 3o October 2013
Government spending continues to outstrip revenue, with the month ending August 31 showing a deficit of $7.34 million, according to Treasury statistics.
According to the latest financial performance update from the Accountant General’s Department, government expenditure amounted to $314.02 million against income of $306.68 million.
Tax revenue at $209.69 million was $28.21 million below budget despite better than expected contributions from fees, fines and licence contributions.
Tax revenue in the third quarter was below target due to sluggish economic performance in the run-up to the July elections, while erratic power supplies and tight liquidity added to the constraints in the economy.
Economists say government needs to direct spending to capital projects rather than recurrent expenditure to bring about sustainable economic growth.
Recurrent expenditure was mainly made up of the civil service wage bill was at $291.44 million, 93 percent of total expenditure and a 10.61 percent variance from the budgeted $262.28 million.
The government wage bill is expected to increase if promised salary increments are effected this year.
Capital expenditure and net lending in August was at $22.58 million against a budget of $262.28 million.
The government extended $1.5 million to the National Railways of Zimbabwe in August to be used in rehabilitating the country’s national rail road network. – The Source
COMMENTS
Here comes the return of the ZW$. As they say in the land of Oz…………. “Brace yourself, Sheila”!
The 89-year-old monster, in power since 1980, secured 61% of the vote while his main political nemesis, MDC-T president Morgan Tsvangirai got a paltry 34%. Tsvangirai said Mugabe rigged the poll in his favour. Zimbabwe National Students Union (Zinasu) said the country was heading for an economic disaster as Zanu PF would continue to pursue the policy of indigenisation which discourages foreign investment and employment creation. The union said the policy was only benefiting youths with links to Zanu PF. Zinasu national spokesperson, Zechariah Mushawatu said the unemployment rate was going to worsen under the new Zanu PF administration.