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Mthuli Ncube exceeds revenue collection target - report

by Staff reporter
26 Nov 2019 at 07:20hrs | Views
Treasury collected over $1,8 billion in August against a target of $1,34 billion, a statement of financial performance of the Consolidated Revenue Fund published in the Government Gazette last Friday reveals.

The statement was published in terms of section 38 of the Public Finance Management Act.

"Total revenue collection for the month of August 2019 amounted to $1,847 billion against a target of $1,344 billion resulting in a positive variance of $503,1 million.

"The positive performance is mainly on taxes on goods and services which contributed $1, 079 billion against a budget of $762 million. Taxes on income contributed $381 million against a budget of $242 million, intermediate transfer tax contributed $225 million against a budget of $195 million," read part of the statement. Treasury spent $339,8 million against a target of $535,7 million.

"The variance is due to projected Cost of Living Adjustment to all members of the Public Service (including employees of grant aided institutions) which was not effected during the period under review.

"Expenditure on goods and services amounted to $223,8 million against a target of $491,5 million giving a positive variance of $267,7 million. The variance is mainly as a result of delay on releasing of supplementary budget resources leaving Government departments and ministries with insufficient time to incur the anticipated expenditures," read the statement.

Government also spend $626,5 million on capital projects against a target of $905,6 million. The 279,1 million variance was a result of delays in the release of supplementary budget resources.

"The budget achieved a surplus of $259,8 million against a targeted deficit of $1,077 billion," the statement stated.

Government adopted austerity measures that have resulted in budget surpluses for the greater part of the year.

A national budget surplus means a Government's finances are in a healthy state and the extra financial resources can be used to pay off debts (which reduces interest payable), can help reduce taxation and help finance new and existing public programmes (social security or medical care).

Source - the herald

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