News / National
Pay increase dents Zimbabwe govt financials
23 Jun 2014 at 08:16hrs | Views
Government returned to deficit in April after an under-performing revenue line and an increase in employment costs.
Latest figures from the Accountant-General's Office show that Government reported a cumulative deficit of $33,5 million in the four months to April from a surplus of $52,06 million in March.
Total revenue including retained was at $1,12 billion against a target of $1,17 billion, a negative variance of $55,14 million.
Tax revenue was below target at $1,02 billion, missing the $1,106 billion target by $82,42 million.
Tax revenue was mainly weighed down by lower than expected Value Added Taxes (VAT), royalties in tandem with the decline in mineral production and under-performing customs duties.
Cumulative royalties were at $41,01 million against a target of $46,16 million but overall tax on income and profits widely beat its expectation at $442,7 million, a positive variance of $27,63 million.
Zimbabwe Revenue Authority collected more from individuals and companies. Total expenditure including retained grants was at $1,12 billion, a figure below the budgeted $1,17 billion.
Employment costs were up to a cumulative $671,07 million.
Month on month, April employment costs were at $225,32 million, a growth of 39 percent against the March cost of $162,03 million.
This follows an increase in civil servants' salaries in April, which were backdated to January. The increase, though welcomed by the employees, led to an increase in Government debt as loans of $40 million were taken during April.
Government, however, managed to repay $24,1 million of its domestic debt. Cumulatively Treasury has repaid $83,86 million of the local debt. Total domestic financing in the four month period was $34,6 million.
Latest figures from the Accountant-General's Office show that Government reported a cumulative deficit of $33,5 million in the four months to April from a surplus of $52,06 million in March.
Total revenue including retained was at $1,12 billion against a target of $1,17 billion, a negative variance of $55,14 million.
Tax revenue was below target at $1,02 billion, missing the $1,106 billion target by $82,42 million.
Tax revenue was mainly weighed down by lower than expected Value Added Taxes (VAT), royalties in tandem with the decline in mineral production and under-performing customs duties.
Zimbabwe Revenue Authority collected more from individuals and companies. Total expenditure including retained grants was at $1,12 billion, a figure below the budgeted $1,17 billion.
Employment costs were up to a cumulative $671,07 million.
Month on month, April employment costs were at $225,32 million, a growth of 39 percent against the March cost of $162,03 million.
This follows an increase in civil servants' salaries in April, which were backdated to January. The increase, though welcomed by the employees, led to an increase in Government debt as loans of $40 million were taken during April.
Government, however, managed to repay $24,1 million of its domestic debt. Cumulatively Treasury has repaid $83,86 million of the local debt. Total domestic financing in the four month period was $34,6 million.
Source - The Herald
