THE Government raised K1.6 billion in terms of tax, non-tax, and grant revenue in June 2013, while expenditure totalled K2.5 billion, Secretary to the Treasury Fredson Yamba has said.
Mr Yamba has since reassured that the Treasury was determined to remain on course with the execution of the 2013 budget.
He said in the latest Treasury information brief on the June 2013 budget performance released yesterday that the difference between revenue and expenditure was bridged by K545 million domestic borrowing through Government bonds and Treasury bills.
A further K354.2 million was from bond proceeds.
“This outturn, against the 2013 approved budget of K32.2 billion, represents an execution rate of 47.5 percent as at end of June 2013. This is good performance considering that most tax revenue inflows started coming in around April,” he said.
On revenue performance, Mr Yamba said total domestic revenues amounted to K1.57 billion, of which tax revenues amounted to K1.5 billion and non-tax revenues K70.2 million.
Government had projected to collect a total of K2.3 billion tax revenues in June but collections were K1.5 billion, mainly due to lower than projected inflows under mining company tax.
He said total income tax amounted to K796.3 billion of which K335.9 million was Value Added Tax (VAT) and K325.2 million Customs and Excise Duty while VAT underperformed by 34.1 per cent, largely because of a backlog of invoices from mining companies which culminated into high VAT refund claims.
In the same month Government projected to receive K191.7 million as foreign grants for both budget and project support, but actual receipts amounted to K104.4 million.
On expenditure performance, Mr Yamba said during the period under review, a total of K2.5 billion was released, which funds went towards constitutional and statutory expenditure such as developmental projects, grants, and monthly releases to Ministries, Provinces and Spending Agencies (MPSAs).
He said Constitutional and Statutory Expenditure totalled K848.5 million, mainly for emoluments for constitutional office holders, and payment of salaries, wages and other salary related emoluments for public service workers.
He said releases to Ministries, Provinces and Spending Agencies (excluding personal emoluments and debt service) amounted to K1.6 billion of which notable expenditure included K604.2 million for road construction and maintenance, and K354.2 million for the link Zambia 8000 Project.
“In addition, K50.0 million was released to facilitate crop purchases by the Food Reserve Agency while K100.0 million was also released for outstanding bills under the Farmer Input Support Programme (FISP),arising from the 2012/2013 farming season,” he said.
He said K80.1 million was paid towards the pension fund.
He said in line with Government’s commitment of ensuring the availability of affordable credit to public service workers, a total of K20 million was released to facilitate the commencement of disbursements under the Public Service Micro-Finance Company.
Mr Yamba said other prominent expenditure included K132.0 million transfers to grant aided institutions such as the Zambia Revenue Authority, Road Agencies and Universities.
He said external debt service payments totalled K98.8 million, of which K96.8 million went towards principal loan repayments while the balance of K1.9 million was allocated to payment of interest on foreign loans.
He said the projected higher collections in the coming months in addition to the funds set aside under the contingency vote were expected to cover the higher wage adjustment for public service workers to be implemented in September, and other contingencies of developmental nature or critical public interest.
He said to guarantee the execution of programmes and activities, the Treasury would continue to diligently implement the standing Presidential directive of ensuring that programme implementation reports were submitted by Ministries, Provinces and other Spending Agencies (MPSA’s), prior to receiving subsequent funding.