Treasury misses revenue target, expenditure spikes

Treasury misses revenue target, expenditure spikes

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.

 

COMMENTS

WORDPRESS: 9
  • comment-avatar
    DL 4 years

    This writer does not understand math. If 11/13 exports were $467.5M; and for 12/13 they declined to $251.8M; then the monthly decline from November to December is 46.14%, not 85.6% as he has written.

    Even that lower figure is massive cause for alarm.

    Mugabe and his ministers should be running around as if their hair is on fire, trying to fix the economy. Instead Mugabe goes on more foreign trips to sleep and to deposit money into his bank accounts, and somehow the country is able to come up with millions of dollars to pay for his birthday and wedding extravaganzas.

    What happened to ZimAsset, the panacea for all problems? Is Joice Mujuru still officially in charge? If so, God help us all.

  • comment-avatar
    gizara 4 years

    if my memory is correct, the Zanu Pf manifesto spoke of unlocking $7bn after the elections through the indigenisation program. can someone shed more light on that, this money could go a long way in reviving the economy.

    • comment-avatar
      DL 4 years

      What they were referring to was similar to what Dis-Grace has just done to Madzoe Citrus. She has magnanimously “unlocked” the land and resources of an independent company for the use of the rest of the whole nation – and herself! That’s how it works in ZANU-PF. Who cares how many jobs are lost, how many companies and banks fail, how many futures are snuffed out? It was done by the First Lady to help the children in her orphanage – or so she says. She has unlocked resources that were providing jobs and merely being used to make money for people other then… MUGABE… So it’s ok!

    • comment-avatar
      John Thomas 4 years

      Gizara this money is non existent. Only a fool thinks otherwise

  • comment-avatar
    Mlimo 4 years

    It all heading down the stellar black hole called zanupf who suck everything in but nothing comes out except verbal diahorrea.

  • comment-avatar
    John Thomas 4 years

    The government is going to go bust. It will be very interesting to watch. There are none in ZANU with an ability to fix this

  • comment-avatar
    masvukupete 4 years

    During the Germany rebuild after world war II, they were prohibited from spending on the military systems. Our budget tells us exactly how the ZPF governement thinks
    https://www.newsday.co.zw/2014/02/19/chinamasas-gun-versus-butter-budget/

    $896 million for military systems (President’s office alone gets $206 million and they still give the president wrong information Misimirebwa, Marange trust fund, Cashbert, Muchechetere, Mahachi etc or as I believe they are all in it to win it)
    $155 million for Agric
    $7 million for Industry
    $88 million for local government
    $69 million for Transport
    $23 million for Energy

    Obviously the Zanu idea of a prosperous nation is a military state instead of an entrepreneurial state. All the economic drivers get less than the military.

    • comment-avatar
      masvukupete 4 years

      Sorry I meant all the economic drivers combined get less than half the military budget.

      • comment-avatar
        masvukupete 4 years

        The President’s office (C10) gets priority over Zesa and Agriculture combined. To them the secret service is more important than solving the electricity and food shortages. Why should they care, they need the energy users and farmers (voters) a lot less than the secret service to win elections.