Treasury records Q1 $6,5bn surplus despite increased pressures

Government revenue exceeded expenditures in the first quarter of the year to March 31 2022, resulting in a $6,5 billion surplus and beating projected deficit for the period of $14 billion despite the spending pressures from rising inflation and the war in Eatsern Europe.

The period has been a difficult one for authorities across the world with the entire globe fighting the negative effects of the Russia – Ukraine war.

The Treasury bettered the budgeted expenditure by 143,91 percent due to improved economic activity and the relaxed Covid-19 restrictions. Revenue for the period came in at $181,2 billion, 6,9 percent more than the $169,49 billion which the Treasury had initially budgeted for.

Tax revenues accounted for 91,5 percent of collections, as it came in at $165,8 billion in the period under review. Non tax revenue of $15,4 billion contributed other revenue inflows.

With the rise of need for food and transport assistance to the needy as the country is facing huge price increases from imported inflation, the Government chose to subsidise some of the goods around including fuel.

Coupled with increasing inflation, subsidies exceeded the targeted $823,6 million by 426 percent to close the quarter with subsidies of $4,33 billion.

Recurrent expenditure for the period was up 1,2 percent to $139,7 billion from a budgeted figure of $138 billion.

The Government wage bill for the quarter accounted for 27 percent of total expenditure incurred in the period as it came in at $47,49 billion. The total was 8,83 percent lower than the budgeted figure of $55,82 billion due to loss of workforce to the diaspora market mostly in the health sector.

Total debt and interest paid in the three months to March was $1,33 billion, 51,55 percent lower than what the Treasury had budgeted.

At the beginning of the year the debt and interest budget was $2,58 billion, but there were no foreign debt interest repayments actually done against the $932,2 million initially targeted.

However, interest on domestic debt paid was 80,61 percent lower than the target of $1,65 billion at $1,33 billion.

The Treasury has been able to clamp down on unnecessary traveling as the net spent on both domestic and foreign trips in the quarter was $6,98 billion which was 77 percent lower than the budgeted $30,84 billion.

Such Government accounts are in line with the restoration of order to public finances after years of fiscal slippage. Also, better finance management is meant to address chronic external imbalances that have left the southern African nation with foreign currency shortages.-The Herald