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Mthuli Ncube posts ZW$6,5 billion budget surplus within three months

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By Alois Vinga


FINANCE Minister Mthuli Ncube managed to post yet another ZW$6,52 billion budget surplus in the first quarter of 2022 in what reflects the alignment of government expenditures within the available resources, latest data on treasury expenditures has revealed.

The announcements of surpluses remain a contentious issue, with most citizens questioning the rationale of such declarations at a time when authorities are struggling to finance critical national needs.

The  data reveals that government expenditures were kept within sustainable levels and far from contracting budget deficits.

“During the first quarter of 2022, the government revenue amounted to ZW$181,21 billion, against expenditures of ZW$174,69 billion, resulting in a budget surplus of ZW$6,52 billion.

“This was against revenue collections which totalled ZW$181,2 billion in the first quarter of 2022, about 6,9% above the target of ZW$169,5 billion. Tax revenues accounted for 95% of total revenue, with the remaining 5% being non-tax revenues,” the report said.

Tax on income and profits amounted to ZW$62,30 billion, accounting for 36% of total revenue.

Value added tax collections accounted for 25%; tax on financial and capital transfers, 9,7%; excise duty collections; 9%; tax on gross revenue, 5,9%; customs duties, 5,9%; and nontax revenue, 5,0% of total fiscal revenue.

Meanwhile, during the same period , employment costs gobbled a total ZW$139,69 billion, leaving very little for capital expenditure.

The data shows that government expenditure in the first quarter of 2022 stood at ZW$174, 69 billion, in the first quarter of 2022. Of the total government expenditures, ZW$139,69 billion (80%) was deployed towards current spending, and just ZW$35 billion 20% for capital expenditures.

“The bulk of capital expenditure were allocated towards capital grants and construction projects, such as the rehabilitation of the Harare- Beitbridge Road, and the construction of the Mbudzi interchange.

“Government capital expenditure was ZW$35 billion and accounted for 22% of total expenditure, during the quarter under review. The bulk of capital expenditure were allocated towards capital grants and construction projects, such as the rehabilitation of the Harare-Beitbridge Road, and the construction of the Mbudzi interchange,” the report said.