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This was an improvement on the January collections as Treasury missed the target of about US$273,7 million by US$19,2 million, Minister Biti said in a State of the Economy address yesterday.
“By February 2013, preliminary revenue collections improved to US$277,7 million against a target of US$249,8 million, giving a positive variance of US$27,9 million.
“Of the total collections, tax revenue was about US$266,3 million, against a target of US$234,9 million while non-tax revenue was US$10,4 million against a target of US$14,7 million,” he said.
But the economy remained “depressed” as a result of funding challenges for both the private and public sectors.
“The economy remains depressed, with funding challenges for both private and public sectors, irrespective of the prevailing stable macroeconomic environment,” he said.
Total expenditure amounted to US$329 million against a target of US$249 million. Employment costs gobbled US$236,3 million, US$50,1 million was spent on operations, US$35,3 million on capital projects and US$8 million for Zimra grant.
Minister Biti said disbursements towards water and sanitation amounted to US$14,5 million while US$13,5 million was set aside for the agricultural sector. The health sector received US$3,2 million while US$3,8 million was released for the dualisation of the Harare-Mutare highway. He said the country had to date imported 432 400 tonnes of maize with 1,4 million people currently receiving assistance through Government and humanitarian agency response programming.
Minister Biti noted that maize yields would be lower than anticipated due to excessive rains in January. In the external sector, imports for the month of February stood at US$606 million while exports were at a lowly US$254 million.
Minerals accounted for 70 percent, followed by tobacco at 13,2 percent, manufacturing at 10,8 percent, horticulture at 3 percent, agriculture at 2,6 percent and hunting at 0,5 percent. Mineral exports stood at US$366,3 million. Platinum exports were US$143,7 million followed by diamonds at US$117,2 million and gold at US$86,4 million.
Inflation was contained at around 2,5 percent, below the regional benchmark of 5 percent.
“In 2013, the country continues to maintain stable price levels, benefiting from the depreciation of the rand against the US dollar and depressed demand due to liquidity constraints,” said Minister Biti.
He said Government remained committed to the implementation of the Zimbabwe Accelerated Arrears Clearance, Debt and Development Strategy through the recently approved Zimbabwe Accelerated Re-engagement Economic Programme.
The programme is meant to facilitate accelerated re-engagement with the international development partners on policy issues and is also considered as a stepping stone towards arrears clearance, debt relief and to enable the country to have access to new financing from international financial institutions. Zimbabwe currently owes external financiers about US$10,1 billion.
Online Reporter