Business / Economy
Zimbabwe govt records $68 million revenue deficit
23 Jun 2014 at 15:44hrs | Views
The government says it incurred a revenue deficit of $68 million in the first three months of this year in a development that has been interpreted as reflecting low production in the economy.
A state of the economy report availed by treasury this Monday shows that cumulative revenue collections to March stood at $805,48 million against a target of $873,3 million.
The $67,82 million deficit translates to a variance of -8,4 percent.
The report says revenue collection to March for the year 2014 was also 3,8 percent lower than what was collected during the same period last year.
Fiscal authorities say a combination of depressed productivity, low disposable incomes and tight liquidity inflows in the economy hindered efforts to broaden revenue collections.
The government also says it failed to sustain the needs of key ministries as cumulative expenditure between January and March this year stood at $766,8 million against a target of $873,3 million.
Major contributors to growth in revenue for the period under review were corporate income tax, pay as you earn (P.A.Y.E), non-tax revenue and other income and profit taxes, among others.
However, value added tax (VAT) and other indirect taxes posted negative contributions to the treasury.
A state of the economy report availed by treasury this Monday shows that cumulative revenue collections to March stood at $805,48 million against a target of $873,3 million.
The $67,82 million deficit translates to a variance of -8,4 percent.
The report says revenue collection to March for the year 2014 was also 3,8 percent lower than what was collected during the same period last year.
Fiscal authorities say a combination of depressed productivity, low disposable incomes and tight liquidity inflows in the economy hindered efforts to broaden revenue collections.
The government also says it failed to sustain the needs of key ministries as cumulative expenditure between January and March this year stood at $766,8 million against a target of $873,3 million.
Major contributors to growth in revenue for the period under review were corporate income tax, pay as you earn (P.A.Y.E), non-tax revenue and other income and profit taxes, among others.
However, value added tax (VAT) and other indirect taxes posted negative contributions to the treasury.
Source - zbc
