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Government spending continues to outstrip revenue inflows with the November consolidated revenue fund statement of financial performance reflecting a US$58 million deficit for the month of November 2013, according to the latest statistics from Treasury.
The audited Government accounts from the Accountant General show that Government’s actual expenditure totalled US$317 million against actual inflows for the month of US$259 million.
The money was spent on employment costs (US$188 million) and diplomatic missions (US$2,7 million) while the balance of the recurrent expenditure was spent on goods, services and current transfers. Recurrent expenditure totaled US$296,5 million against a planned budget of US$279,9 million while US$71 million worth of capital programmes were planned but only US$20,8 million was spent.
Inflows for November at US$259 million were far off the mark compared to the US$351 million that Government planned to realise and spend on its programmes for that particular month.
Revenues from taxes on income and profits brought in US$70,4 million against the budgeted US$98,7 million resulting in a negative variance of US$28,3 million or 28,69 percent deficit.
Other revenue sources also underperformed in November with customs duty managing US$30,5 million against a target of US$38,8 million, excise duty US$41,2 million against US$43,6 million while value added tax brought in US$86,4 million against the budgeted US$114 million. Government had budgeted for US$8,5 million revenue from investments and property yet US$5,4 million was realized from that source. A total of US$14,9 million was expected from fees, fines, licences and contributions but only US$10,5 million found its way into national coffers.
This scenario explains the 6 percent negative variance the Zimbabwe Revenue Authority registered on revenue collections for the year to December during which US$3,43 billion was realised. A July 2013 National Social Security Authority Harare Regional Employer Closures and Registrations Report for the period July 2011 to July 2013 shows 711 companies in Harare closed down, rendering 8 336 individuals jobless and this explains the falling revenue inflows.
Zimra said the decline in revenue inflows was a result of the slowdown in economic activity, scaling down of operations by companies and low industrial activity has resulted in an ever shrinking tax base, a situation that has affected national revenue collection.
Online Reporter