Government has recorded a positive growth on revenue collected from January to March 2021, Secretary to the Treasury Fredson Yamba has announced.
Mr Yamba said during the period under review, the treasury collected revenue amounting to K18.5billion representing 13 percent above target.
He said the first quarter approved budget target for total revenues and grants was projected to be K16.3 billion with K12.4 billion from taxes, K3.3 billion from non-tax revenues and K469.6 million from grants.
Mr Yamba was speaking during a media briefing in Lusaka yesterday, adding that the over-performance was mainly driven by payment of Pay As You Earn (PAYE) tax arrears, upward amendments of provisional returns and advance payments by both Mining and Non-Mining firms.
He said with regard to government spending, total expenditures in the first quarter of 2021 stood at K22 billion representing 23 percent below the projected K28.6 billion.
Mr.Yamba added that notable expenditures included K6.6 billion for Personal Emoluments, K3.2 billion for the Use of Goods and Services, K2.5 billion on Non-financial assets and K2.5 billion on transfers and subsidies.
He said as the nation continues to embrace a multi-sectoral development approach, it is important that the government undertakes countrywide budget consultations to get input of all stakeholders.
Mr. Yamba noted that the country’s fiscal deficit remains high and that there is a need to continue formulating revenue policies that will enhance revenue collections while promoting the country’s development agenda.
“The 2020 and 2021 fiscal years required the government to take measures to cushion the impact of COVID-19. While this was imperative, there is a need to formulate a medium -term policy that will put the country back on a trajectory that will achieve fiscal consolidation “, he said.
He has since launched the 2022 budget consultations and invited the public , private sector players and non- state actors to make proposals on tax and non- tax policies for possible inclusion in the 2022 National Budget.