July revenue 20pc above target

Source: July revenue 20pc above target | The Herald November 1, 2019

Ishemunyoro Chingwere Business Reporter

Government’s total revenue collection for the month of July topped $1,478 billion, 20 percent better than the set target of $1,236 billion as Government’s revenue collection interventions continue to bear fruit.

Total expenditure was $1,340 billion, translating into a surplus of $138 million.

Statistics in the Consolidated Statement of Financial Performance (CSFP) approved by the Secretary and Paymaster General, and the Acting Accountant General, show that the positive performance in revenue is largely attributable to taxes under Other Taxes which contributed $306,5 million against a budget of $138,6 million.

Value-Added Tax also performed above target, contributing $490 million against a budget of $411,3 million while Customs Duty contributed $170 million against a budget of $110 million.

The month of July also saw Non-Tax Revenue recording a positive variance of 30 percent with the larger chunk of it attributed to Government fees and licences.

On expenditure, employment costs once again chewed more than the budgeted outlay with 80 percent after taking up $502,3 million against a set target of $278,7 million and this can be attributed to the cost of living adjustments which Government has extended to its employees.

Government continues to invest in capital products despite rising costs and capital expenditure for the month amounted to $307,9 million against a set budget of $168,7 million, translating to a variance of $139,1 million.

The consolidated statement notes the variance was a result of price increases that were witnessed in various sectors of the economy and for which there was no estimate reviews.

This variance was sighted as one of the major reasons why the budget fiscal surplus target of $644 million could not be achieved as the actual realised surplus only amounted to $138,1 million.