Government revises revenues downward

Source: Government revises revenues downward | The Financial Gazette November 10, 2016

GOVERNMENT has made a downward revision on revenue projections for November and December.
Finance and Economic Development Minister, Patrick Chinamasa said the “underperforming trend” was expected to carry on to next year due to the absence of reforms which will result to public employment costs continuing to be disproportionately high in relation to budget revenue.
“The key assumptions for 2017, is a 4,8 percent growth, revenues of US$4 billion, expenditure will be US$5 billion creating a gap of US$1 billion,” Chinamasa told lawmakers in Bulawayo during a pre-budget meeting last week.
“Growth will be driven by agriculture, expected to grow by 14,4 percent, mining 2,3 percent and manufacturing at 3,3 percent. In 2016, the economy is expected to register a “moderate growth of 2,7percent”, he said.
Interim revenue collections as at end of October 2016 indicate that revenue was low. Collections as at October 29 was US$261 million against a target of US$288 million”
“Projections for November and December, have been revised downwards from a cumulative total of US$773,1 million to US$663,8 million. Projected foreign direct investment remains marginal at US$614 million in 2016. This is inadequate to significantly support Zim-Asset requirements estimated at US$25 billion between now and 2018,” Chinamasa said.
The theme for this year’s Pre-Budget Seminars is: “Enhancing Transformative Economic Development through Domestic Resource Mobilisation and Utilisation.”FinX