Thu, 25 May 2017
Last Updated: Thu, 25 May 2017 3pm
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CBSI: Revenue collection plunged in late 2016

THE Government’s revenue collected in the last six months of 2016 went down by 8 percent (%) to $1,746 million, the CBSI’s March MonetaryPolicy Statement shows.

According to the document, the drop was 3% below the budget, and was also 13% lower than the same period last year.

Despite a rise in taxes, the decline in the second half of the year emanated from lower grants and other revenue received by the government.

“Grants directly received by the government plunged from $487 million in the first half of the year to $271 million in the last six months of 2016.

“Notably, there were falls in both budget support and capital projects supported by donors during the period.

“Meanwhile, other government revenue declined 16% to $170 million on the back of a decrease in property income which exceeded the rise in the sale of goods and services.

“In terms of total revenue, other government revenue accounted for 9% and grants accounted for 15% during the reference period,” the report stated.

It added however that, consolidated tax revenue during the period between July and December 2016 totalled up to $1,351 million.

This was higher by 7% against the first half of the year but was 13% below the same period in 2015 and 2% under the budget.

“Driving this positive outcome was the growth in individual and company taxes, goods and services taxes, and, export and import duties after the marked fall in the first six months of the year.

“Taxes comprised 75% of total revenue and in spite of the moderate increase, could not remedy the gap left by the fall in grants and non-tax revenues and ultimately finance expenditure,” the CBSI’s March Monetary Policy Statement said.

By RONALD TOITO’ONA


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