Mthuli Ncube declares $800 million budget surplus, targets $24 billion tax revenue

Spread This News

By Alois Vinga

FINANCE Minister, Mthuli Ncube has declared a budget surplus of $803 million in the first half of 2019 amid plans to increase tax collections revenue to $24 billion next year on the strength current of strategic reforms.

The Treasury boss made the announcements in a 2020 budget strategy paper released this week ahead of next year’s national budget.

“A budget surplus savings of $803.6 million was attained during the half year, which culminated in domestic debt decline to $8.8 billion as at end June 2019, down from $9.5 billion recorded as at 31 December 2018.

“Of the total anticipated revenue, tax collections, are expected to increase to $23 853 billion in 2020 from $13.3 billion in 2019. Similarly, non-tax revenue is expected to surge to $948 million from $655 million,” Ncube said in the paper.

Among other measures the market value of all the final goods and services produced within Zimbabwe will register a nominal growth of 5 % to reach $209 billion in 2020 while expenditures are estimated at $28.5 billion.

Ncube said total revenue collections generated locally estimated at $4.7 billion can only sustain expenditures of $28.4 billion.

He added: “Of the total expenditures, capital expenditures are set at $7.1 billion while recurrent expenditure is projected at $21.4 billion.”

The document says 2020 Budget will focus on enhancing revenue collection through advancing the ongoing Zimbabwe Revenue Authority and other administrative reform initiatives on broadening the tax base and closing revenue leakages.

”Due to this realisation, prominence will be on improving taxpayer compliance through facilitative Information Communication Technology based processes that, among other measures, simplify tax payment procedures, minimise taxpayer costs and also enhance records management,” he said.

The Finance Minister in the paper produced ahead of 2020 budget consultations that are underway and presentation expected next month, said revenue improving measures will however also be cognisant of the necessity of supporting the local industry through appropriate tax supportive measures and other tax dispensations.

“On the expenditure side, government spending will be contained within sustainable levels, avoiding recourse to central bank overdraft facility and expenditures outside the budget,” he said.