State finances in shambles - Zimbabwe Situation

State finances in shambles

via State finances in shambles – Southern Eye 16 March 2014

Zimbabwe’s recurrent expenditure rose to 96% of revenue collected in January, crowding out critical capital projects, figures obtained from Treasury have shown.

Tax revenue at $266,6 million was lower than the target of $278,6 million, while total expenditures for the same month amounted to$235,9 million.

Treasury attributed the declining revenues to company closures, the under-performance of the mining sector on the back of fluctuating mineral prices on the international market and a shorter working period due to the annual shut down which extended to part of January.

Platinum output marginally rose to 1 015kg against 1 001kg produced in the previous month while nickel output was higher at 1 559 tonnes from 1 235 tonnes produced in December.

Gold output decreased to 1 109kg in January 2014 compared to 1 151kg produced during the month of December.

“Recurrent expenditures constituted about 96% of total expenditure leaving about four percent for capital expenses. Of the total recurrent expenses, employment costs took up about 60,5 %. During the month, total capital disbursements amounted to $9,8 million,” Treasury said in its monthly economic update for January obtained.

The February data is not yet out. “The manufacturing sector remains under pressure with a number of companies facing acute financing challenges. In the outlook, prospects for the agricultural sector look positive and are expected to breathe hope in agro-processing and other related industries, as well as improving liquidity situation in the economy,” Treasury said.

Of the total revenue collected, $256,8 million or 96,3% was tax revenue, with the remaining 3,7% being non-tax revenue. The major tax revenue heads were Value Added Tax, Pay As You Earn, and Excise Duties contributing 36%, 24% and 13% respectively. Non-tax revenue was mainly driven by interest, dividends and rent from government property, contributing $8,6 million out of the total non-tax revenue of $9,8 million collected during the month under review.

The latest available export data, for December, show exports for that month were at $251,8 million, 85,6% lower than the $467,5 million earned in November 2013.

On the other hand, imports slowed to $576,6 million in December from $594,3 million in the previous month. In total, imports for 2013 were $7,7 billion against exports of $3,5 billion, giving a trade gap of $4,2 billion.

 

COMMENTS

WORDPRESS: 2
  • comment-avatar
    munzwa 4 years

    could get worse!!do we care, powerless to do anything..best way out of it is to make a bigger begging bowl…

  • comment-avatar
    NBS 4 years

    Please tell us something we don’t know. Why are they in a mess? Why did Pre independence Zimbabwe thrive economically even under ‘real’ sanctions? Only when someone in government is big enough and man or woman enough to begin telling the truth and begin where the rubber meets the tar will we begin to go forward. This nation has been built on a foundation of bloodshed, violence, theft, greed, hatred, racialism, unforgiveness, lies and much more and we look for God’s blessings like a great economy. Surely for a so called Christian nation we are spiritually dense, blind and deaf. It is the “Truth” that sets us free. No repentance! No restoration!