Government has earmarked the 2 percent intermediated money
transfer tax (IMT), which has performed above target since introduction last
year for infrastructure development among other key economic enablers. Further,
the Government indicated that airtime levy, which has also performed well
consistently and raked in $11,4 million in April, had been earmarked for
medical equipment.
A report by the African Development Bank (AfDB) says that
Zimbabwe needs US$26 billion to bridge its infrastructure gaps, which entails
deficiencies in services associated with roads, water and sanitation,
transport, electric power and ICTs.
And since its introduction last year, the transactions tax,
which has raised more than half a billion dollars, has been used for other
critical things that include education and safety nets.
The tax has helped Treasury address the perennial challenge
of budget deficits and came in handy in providing relief funding when Zimbabwe
fell victim to the devastating Cyclone Idai, which hit parts of Manicaland and
Masvingo provinces.
On a monthly basis, the IMT has rolled in an average of
$100 million and with the tax now earmarked to finance, predominantly,
infrastructure the tax could alter the face of Zimbabwe’s public infrastructure
landscape, particularly roads.
In its consolidated revenue accounts for April, Government
expressly stated that the IMT tax, though it has been used for other public
programmes, had been earmarked for infrastructure.
Total capital expenditure in April therefore came in at
$138 million against a national budget of $127 million resulting in a positive
variance of $10,4 million.
“A total of $92,6 million was spent on capital transfers
against a budget of $32,5 million, a variance of 60,1 million, a 185 percent
variance. The major transfer was to Ministry of Agriculture of $74,3 million.”
This comes as Government, which now has its finances in
health state following successive budget surpluses since November last year, at
$822 million posted a positive variance of 12 percent.
Major contributors to Government revenues in April were tax
on goods and services, which contributed $536,3 million against a budget of
$434 million and non-tax revenue, which brought $11,7 million.
Recurrent expenditure in the period under review amounted
to $556,9 million against a budget of $428 million, resulting in a positive
variance of $128,2 million or 8 percent.
“Employment costs amounted to $320,6 million against a
budget of $279 million, a 15 percent variance. Goods and services amounted to
$118 million, against a budget of $58,2 million.” Herald
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