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Business Reporter
The government has said budget implementation continues to face expenditure pressures against low revenue collections which resulted in a lower budget outturn for 2014.

Presenting an overview of the state of the economy at a workshop recently, permanent secretary in the Finance Ministry Willard Manungo said in 2014, revenues were originally projected at $4.1 billion and then revised to $3.9 billion during the mid-year in view of the economic slowdown.

“The outturn by year-end is now expected to be lower at $3.78 billion.” The government also cut the outturn for this year to $3.55 billion from the $4 billion announced in the 2015 budget. The downward revisions were made in line with the requirements of the IMF’s Staff Monitored Programme.

Latest accounts from Accountant-General’s Department show that the government slumped to a $196.19 million deficit in November after net government revenue performed $283.48 million below target at $3.35 billion.

The budget remains skewed towards recurrent expenditures of about 92 percent leaving only about 8 percent for capital development programmes.

Manungo who was speaking at a workshop held for officials from the National Development and Reform Commission of China said the government has to redouble its efforts in growing the economy and seeking other alternative sources for boosting economic activity.

In view of that, Manungo said the 2015 Budget contains major policy measures for addressing the challenges in line with Zim-Asset priorities and objectives.

“Specific measures include removing impediments to attraction of foreign investments; resolution of external debt overhang; addressing vulnerability in the banking sector; and creating an enabling environment for investment, including improving the ease of doing business.”

He said FDI is projected to increase 69 percent to $591 million from $349 million last year on the back of the continued implementation of the ease and cost of doing business reforms and the re-engagement process.