While the
surplus falls short of the ZiG7,18 billion originally budgeted for, leaving a
negative variance of 26 percent, it nonetheless marks a commendable start to
the year.
At ZiG18,2
billion, total expenses to April 2025 came in just 1 percent below the ZiG18,35
billion budget, reflecting tight control over expenditure outlays.
Payment towards
the compensation of employees stood at ZiG8,47 billion, which is 4 percent
under budget, underscoring a leaner payroll without compromising essential
staffing levels.
Interest
payments on public debt of ZiG362,9 million exceeded the ZiG311 million target,
yet their timely settlement should go a long way in bolstering creditor
confidence in the Treasury.
Social benefit
payouts, similarly, were close to the expenditure plan, at ZiG2,1 billion
versus the ZiG2 billion estimate at the beginning of the year.
Crucially,
non-tax revenue performed spectacularly, bringing in ZiG1,8 billion against a
projection of ZiG0,6 billion, outpacing targeted performance by 200 percent, or
ZiG1,2 billion above budget.
“The surge in
non-tax receipts is a testament to the Treasury’s innovative approach to
revenue diversification,” said Gladys Shumbambiri-Mutsopotsi, a senior fiscal
analyst.
“Through
leveraging asset dividends and regulatory fees more effectively, the ministry
has unlocked fresh revenue streams that cushion the budget against shortfalls
in traditional taxation.”
Within the tax
headroom, value added tax (VAT) collections reached ZiG5,6 billion, slightly
below the ZiG6,4 billion target, while excise duties of ZiG2,6 billion trailed
the ZiG3,1 billion forecast by 15 percent.
The shortfalls
in indirect taxes reflect broader consumption patterns and energy price
volatility, but have been largely offset by non-tax gains and strict spending
controls.
Total
comprehensive income, a broader measure that includes other gains and losses,
totalled ZiG21,65 billion, versus a ZiG27,95 billion budget, yielding a
negative variance of ZiG6,3 billion in the negative.
“Prudent cost management has kept the spending line remarkably steady,” noted Shaun Kadange, a financial sector commentator.
“This restraint
has been crucial in delivering a surplus in an environment where revenue has
yet to fully rebound.”
Mr Kadange
applauded two further strengths: first, the Government’s track record in
settling interest obligations without delay, which has contained borrowing
costs; and second, its success in curbing budget overruns through real-time
expenditure monitoring.
“Timely debt
servicing not only preserves the nation’s creditworthiness, it also prevents
budgetary slippage arising from penalty interest,” he observed.
“Moreover, the
Treasury’s new expenditure dashboard has dramatically improved spending
discipline at line ministries.”
However, Mr
Kadange cautioned that the underperformance of VAT and excise duties highlights
a vulnerability in consumption-driven revenues.
“While non-tax
receipts have outshone expectations, reliance on one-off gains, such as asset
sales, cannot substitute for sustained growth in core tax bases,” he warned.
“A policy tilt towards boosting domestic consumption and formal sector activity will be required to fortify revenues against shocks.” Herald
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