By BUUMBA CHIMBULU
GOVERNMENT has exceeded revenue target for the first quarter of this year by 13 percent, despite the fiscal deficit remaining elevated.
Revenue collected between January and March this year amounted to K18.5 billion from K16.3 billion target, representing a 13 percent increase.
The over performance of the revenue collection was driven by Pay As You Earn (PAYE) tax arrears, upward amendments of provisional returns and advance payments by both mining and non-mining firms. This is according to the Secretary to the Treasury, Fredson Yamba, who briefed the media in Lusaka yesterday when launching the 2022 national budget consultation and update on the performance of the first quarter of 2021.
Mr Yamba said Government spending, total expenditures, including amortisation, in the first quarter of this year was below the projected level.
He explained that total expenditures stood at K22 billion from a projected K28.6 billion, representing 23 percent below target.
“Notable expenditures included K6.6 billion for personal emoluments, K3.2 billion doe the use of goods a d services, K2 5 billion on non-financial assets and K2 5 billion on transfers and subsidies,” Mr Yamba said.
He however indicated that Zambia’s fiscal deficit remained high and that there was need to continue formulating revenue policies that would enhance revenue collections while promoting development agenda.
Mr Yamba said the 2020 and 2021 fiscal years required Government to take measures to cushion the impact of Covid-19.
“While this was imperative, there is need to formulate a medium term policy that will put the country back on a trajectory that will achieve fiscal consolidation,” he said.
Meanwhile, Mr Yamba announced that Finance had started preparations for the 2022 national budget and 2022-2024 Medium Term Budget Framework.
Mr Yamba indicated that Government was open for proposals on tax and non-tax policies for possible inclusion in the 2022 national budget.
He guided that the proposals should regard increasing tax revenue and broadening its base, simplifying and modernising of tax system, increasing tax compliance and re-align and streaming tax incentives.
