NOTES TO THE MANAGEMENT ACCOUNTS FOR THE MONTH OF FEBRUARY 2017
Total revenue for the month of February amounted $264 million against a budget of $269 million resulting in a negative variance of 2%. Main contributors were taxes on individuals, entities, excise duty and value added tax. Taxes on individuals was $54 million against budgeted of $61 million hence an overall negative variance. Non tax revenue reported an adverse variance of $7 million as a result of poor performance by revenue from property which was $0.1 million against a budget of $4 million. Fees, fines and licences collection were $16 million against a budget of $19 million. There is great need of follow up on property revenue to improve overall non tax revenue performance.
The total expenditure incurred was $403 million against a budget of $301 million resulting in a negative variance of $102 million (-34%). Major costs incurred for the month of February 2017 are related to:
a) Current transfers amounted to $129 million against a budget of $80 million leading to negative variance of $49 million. Current transfers relates to transfers to ZIMRA, grant aided institutions salaries and operational costs amounted to $89 million compared to budget of $40 million.
b) Interest on debt amounted to $18 million against a budget of $10 million. The negative variance was mainly related to domestic borrowing where interest paid was $18 million compared to budget of $9 million.
c) In terms of capital expenditure $18 million was incurred on the acquisition and construction of buildings against budgeted amount of $2 million.
d) Ultimately capital transfers related to various projects of $54 million were transferred to the Reserve Bank of Zimbabwe, Grain Marketing Board, Zimbabwe Revenue Authority and Deposit Protection Corporation. This was compared to budgeted amount of $4 million.
During the month of February 2017, a deficit of $139 million was reported against budgeted deficit of $32 million. Without current transfers to grant aided institutions of $129 million and capital transfers of $54 million, the Government of Zimbabwe will be reporting a surplus of $42 million.