Government says it has raised a total of KR5.1 billion from January – March, 2013 in terms of revenues and grants while expenditure totalled KR8.1 billion but regretted that it was below target by 13.6 percent.
Secretary to the Treasury Fredson Yamba says during the same revenue performance period, government projected to collect a total of KR5.9 billion as revenues and grants but a sum total of KR5.1 billion was collected .
And Mr. Yamba says that in the second quarter, the Treasury expects to raise KR6.8 billion and plans to spend KR7.2 billion leaving a balance of KR0.4 billion.
Mr. Yamba says the balance was financed through programmed domestic and foreign borrowing.
He explained that the performance was particularly affected by lower than expected collections on company income tax.
This is contained in a press statement issued by Ministry of Finance Public Relations Officer, Chileshe Kandeta and released to ZANIS in Lusaka yesterday.
Secretary to the Treasury said total domestic revenues collected during the period under review amounted to KR5 billion of which tax revenues amounted to KR4.7 billion and non-tax revenues amounted to KR245.7 million in which Government projected to raise a total of KR5.3 billion as tax revenues.
He said Income tax revenues amounted to KR2.6 billion but the funds were below the target of KR2.9 billion representing an under performance of 9.4 percent that was affected by collections from mining corporate tax collections that were also below target by KR416.6 million or 41.7 percent.
He stated that Value Added Tax (VAT) recorded a collection of KR1.2 billion while Customs and Excise totalled KR949.6 million.
He added that Government expected to receive KR351.6 million as grants for both budget and project support during the period under review.
On expenditure performance, Mr. Yamba said during the period under review, a total of KR8.1 billion was released against a target of KR8.2 billion.
He said the released funds went towards facilitating constitutional and statutory expenditures such as salaries and grants, as well as programme implementation coordinated by various Ministries Provinces and Spending Agencies (MPSAs).
He said in terms of debt service payments, a total of KR816.3 million was released of which KR441.7 million was spent on domestic debt service on Government bonds and Treasury Bills while KR374.6 million was channelled for external debt.
He said other notable expenditures included KR825.7 million for road construction and maintenance which represented 32.7 percent of the domestically financed Road Sector Budget.
In addition, KR247.7 million was released for the Farmer Input Support Programme (FISP) outstanding bills arising from the 2012/2013 farming season.
Mr. Yamba said government faced some challenges in terms of lower projected revenue inflows particularly in respect of company income tax which under-performed resulting in the Treasury having to scale down some planned releases for the quarter.
He has however hinted that government would address in the coming quarters institutional coordination mechanisms that are being put in place by the Government.
He says the key lesson learnt from budget performance in the first quarter is the need for enhancing revenue collection measures so as to effectively implement and manage development programmes.
The Secretary to the Treasury expressed hope that during the rest of the year, the treasury will continue to closely monitor and evaluate budget and economic affairs to ensure that national development programmes are on course in all MPSA’s.
“I take this opportunity to encourage all the MPSA’s to continue promoting best practice and ensuring sustained transparency and accountability in the utilization of public resources, for the general improvement in the well-being of the people of Zambia,” said Mr. Yamba.
ZANIS
I can see a deficit of Kr3 billion in the first Quarter of the year..so its true that there has been a budget overrun. in the second quarter the Gvt is still planning to spend more than what will be raised…What planning is this? No room for savings even after the removal of subsidies…
So you think we are joking when we tell you that CHIMBWI has no PLAN !!!
This poor performance is what you get from having 70 assistant ministers,a bunch of new districts and their officers and countless Sata relatives at embassies.Now its even less money in your pocket poor zambians.
This is what you voted for !!! We talked, no one heard !!
In very simple terms, could someone tell me what “budget overrun” means?
It means government is spending money, which they don’t have. The expenditure is more than the income. Over -Run Budget. God, help us on this. Our faith is on you.
“Overrun” means the govt spent more than it had planned to spend over a given period, e.g. first quarter 2013. Expenditure more than income is called deficit. Therefore, when you have a budget overrun, it means at the end of the year, your deficit will be higher than planned. If such a situation continues over a number of years, you end up like Greece, Spain, Italy or Portugal. And Zambia under KK. So watch out, “budget overrun” is very dangerous for the economy
Chairman Mao and Umfundisi, Thanks a lot for your clarification. But I guess the deputy minister of finance does not understand “budget overrun” and “budget deficit”. If he did, he would not have denied that fact a few days ago. Why do these politicians deny ugly facts which are there for everyone to see?
What did that I’D’I’O’T Keith say, what a deputy!
And Mr. Yamba says that in the second quarter, the Treasury expects to raise KR6.8 billion and plans to spend KR7.2 billion leaving a balance of KR0.4 billion……WHY NOT CUT ON UNNECESSARY EXPENDITURE TO AVOID BUDGET DEFICITS
@kingfisher:Budget deficits serve a purpose- they aid economic growth due to the massive govt purchasing pwr.Right now the U.S govt is using deficits to help in economic recovery and Japan has been doin it for decades to keep deflation at bay.Italy has massive debts also due to yrs of very slow growth with their govt using deficit spending to help kickstart more robust growth.More growth means more tax receipts for govts which eventually cuts deficits.
….”And Mr. Yamba says that in the second quarter, the Treasury expects to raise KR6.8 billion and plans to spend KR7.2 billion leaving ‘a balance’ of KR0.4 billion”.. ….
does anyone else take issue with the use of the word “balance” in this statement? surely if you plan to spend more than you plan to raise, what you have is a “deficit” not a “balance”… just saying lol.
Then what was Keith Mukata waffling about yesterday? This is a simple budget over run!
This is the type of ukwa governing style.
Nothing good will comeout from this failed government.
What do we expect from kaponyas type of rule?
MMD must come back to rule because they knew what they we’re doing. Eeshhh!
How can you comment on something you dont even understand?Kaponya is you and preceeding bloggers who comment like they are suffering diarrhea or are drunk without money just insulting anyone because they are broke and dirty.
At personal level if a person spends more than he earns, that excess spending is financed by borrowing. The creates a debt burden on that individual. Unless there is a specific source of fund to cover excess spending, that debt starts spiralling because of interest additional to further excess spending. This situation can choke with passage of time. It also becomes increasingly difficult for that person to dig oneself out of that debt hole trap. This is the reason the teaching that one must live within one’s own means is crucial. When one becomes highly indebted his thinking becomes troubled and may lose respect and credibility. The measure of one’s indebtedness is a good and viable yard stick. Even PF GRZ must pay attention to this. Lets earn more than we spend, its a credibility issue.
Floyd Chitalu,you must understand that we cannot always apply ”personal level” situations to a country or a big economy!!! using your own example,if people save a lot of money,they basically get to be rich! But if a country decides to save a lot of money,there ll be no employment for many people raising the unemployment levels.For an economy to move forward the government needs to spend more,if it has no spending money,then borrow the money but spend it in returnable ventures( qualifying this spending in returnable ventures to investment)….please,lets stop criticizing anything we see or read,we must analyze then encourage the positives about it,for example,we must analyze grz to invest the borrowed money,not use it in elections or paying off other debts or paying grz officials.
It is very misleading to make a judgement on the implication of the budget from gross figures only, if so, it is important to items the projects undertaken/being undertaken that have contributed to the negative budget scale. There are currently a lot of economical projects being undertaken, even though some of these where not planned, but they have been seen to be of immediate need to economy and people, e.g roads in some parts, universities etc. These projects can never be done unless there is sacrifice. The same MMD some of you are talking about waited for government to be rich before embarking on such massive scale of projects, while ministers and RB continued depleting coffers by any which way. Gents and ladies look at big picture here. It is time we built the country at all cost
Ba Kaingo, At all costs? Where does that statement stop? cost of the Zambian people? if you starve your people who will reap the development you are talking about.
Now for serious analysis of the utterations by the ST, we have budget overuns but analysing the expenditure partern will show you that the bulk of this has not been on construction or productive activiies as these are paid for as they go so be mindfull that there will come a time when we will need to honor our obligations to the contractors we are engaging now. the money already spent has been on consumption items such as by-elections, administrative costs (creating districts and provinces) and others. Of all the projects so far commenced, be mindfull that only mobilization fees have been paid (5%) and rest needs sourcing
Ba Sido, at all cost does not necessarily mean starving Zambians. After all most salaries are increased. When you say “has not been been on construction or productivity activities” give us the figures for those activities, to justify your opinion. Just by mare judgement based on the number of road works projects being undertaken, schools being built, government re-alignments, government activity straightening, stadiums being built. The amount spent is far small. I would agree if your contention was based on the huge government administration and the costs of by-elections. By-elections are being caused more by the unstable and selfish individuals who easily get lured by tangling bananas. The budget overrun is just more in good faith. a lady gave birth by road side today because of bad…
Govt should have shown seriousness by at least reducing their work force by half. Employing so many ministers and permanent secretaries at such high cost is wasting money.
No one will listen to your good advice my friend. Just prepare to vote them out in 2016 and bring in a man with understanding on economic issues like HH.
Anyone finds the introductory sentence confusing?? “Government says it has raised a total of KR5.1 billion from January – March, 2013 in terms of revenues and grants while expenditure totaled KR8.1 billion but regretted that it was below target by 13.6 percent.”
Question: What is the regret? That the expenditure at KR8,1B bellow the targeted 13.6%?
Alternative sentence proposed : Governments’ collections from revenue and grants in the 1st quarter of 2013 totalled KR5.1B,13.6% below the expected target . Meanwhile, expenditure totaled KR8.1B.