Revenue projection revised downwards

Victoria Falls Reporter
THE Government has revised downwards revenue projection for 2013 from $3,86 billion to $3,762 billion owing to the poor performance of the economy in October, Finance and Economic Development Minister Patrick Chinamasa has said. Addressing parliamentarians and other stakeholders during the just-ended pre-budget seminar in the resort town of Victoria Falls on Saturday, Cde Chinamasa said interim revenue collections as at 29 October indicates that revenue collections amounted to $248 million against a target of $328,8 for the month.

“Overall, the initial budget revenue projection of $3,86 billion for the year has been revised downwards to $3,762billion, resulting in a projected revenue shortfall of about $98 million,” he said.

Minister Chinamasa said the decision to revise revenue collections for 2013 comes on the back of poor performance of the economy, with latest figures from the Zimbabwe Revenue Authority (Zimra) indicating that revenue collections for the third quarter missed its target by one percent.

He said this had forced Government to revise downwards revenue collections for November and December from a cumulative total of $816,2 million to $702,2 million.

“Consistent with the downward revision in the overall economic growth rate and declining trend in revenue collections, the initial revenue projections for the remaining two months of the year that is November and December have been revised downwards from a cumulative total of $816,2 million to $702,2 million,” said Minister Chinamasa.

The downward revision of the revenue collections was in line with the developments in the economy as the growth rate has also been revised.
The country’s revenue collection is being pushed by value added tax contributing 29 percent, individual income tax raking in 20 percent, excise duty at 13 percent with customs duty and corporate income tax contributing 20 percent.

Meanwhile, the Minister of State for Provincial Affairs in Matabeleland North Cde Cain Mathema told the seminar that the 2014 budget should consider funding outstanding projects in the province.

He said it was high time that projects such as the Tsholotsho-Bulawayo road among other roads, the rehabilitation of Khami and Zimunya dams and resuscitating irrigation schemes were funded to induce development and avert hunger in the province.

“I also ask you Minister of Finance to consider separate funding for Hwange National Park to beef up security. The park is bigger than countries like Belgium but it has a handful of rangers protecting our national heritage. We need to see more funds channelled towards protecting the animals which are a source of revenue to the country,” he said.

The pre-budget seminar was organised to afford parliamentarians an opportunity to give their input towards the 2014 National Budget expected to be presented next month.