via Zim fails to meet revenue targets | Fin24 Apr 08 2014 11:47 by Malcom Sharara, Fin24’s correspondent in Zimbabwe
Zimbabwe’s economic environment continues to look dire, with the country failing to meet its revenue targets for the month of February 2014.
In a monthly state of the economy statement released onApril 2, Finance Minister Patrick Chinamasa said total revenue collections of the month of February stood at US$248m against a target of $273.26m, resulting in a negative variance of $25.3m.
The income comes short of the country’s total expenditure for February of $264.8m, resulting in a deficit of $16.8m.
Analysts said the revenue situation in the country is not surprising as most sources of government revenue are struggling.
Employees who provide the bulk of the taxes through pay as you earn (PAYE) are being retrenched or going for months without pay.
Companies, which provide corporate tax, are also struggling with many having closed or gone under liquidation.
Consumer spend has also been affected due to the decline in disposable incomes, resulting in government receiving less from value added tax.
Exports have not been bringing in much either, as Zimbabwean products are less competitive on the market.