via Treasury misses January revenue target, recurrent expenditure spikes to 96pct | The Source March 13, 2014 by Bernard Mpofu
Zimbabwe’s recurrent expenditure rose to 96 percent 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 1,015 kg against 1,001 kg 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 1,109 kg in January 2014 compared to 1,151 kg produced during the month of December.
“Recurrent expenditures constituted about 96 percent of total expenditure leaving about four percent for capital expenses. Of the total recurrent expenses, employment costs took up about 60.5 percent. During the month, total capital disbursements amounted to $9.8 million,” said the Treasury in its monthly economic update for January obtained by The Source this week.
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 percent was tax revenue, with the remaining 3.7 percent being non-tax revenue.
The major tax revenue heads were Value Added Tax (VAT), Pay As You Earn (PAYE), and Excise Duties contributing 36 percent, 24 percent and 13 percent 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 percent 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.