Despite the negative impact of covid 19 which has weighed down overall economic performance and compromised the credibility of the 2020 national budget, Non-Tax Revenue category is projected to outperform the budget of K11.3 billion by 7.3% to hit about K12.1 billion.
Finance Minister Dr. Bwalya Ng’andu has estimated that although the overall resource envelope will fall short of target by approximately K17.2 billion of the 2020 budget, non tax revenue category will be 7% above target.
Speaking when he was giving a ministerial statement in Parliament on July 14, 2020, Dr. Ng’andu said some of the key factors leading to a fall in the 2020 budget include the loss of exceptional revenue, covid – 19 related tax relief measures and the overall general reduction in economic activities.
He said on the domestic front, the ministry has continued to review the performance and projected growth of the economy amid the Covid 19 pandemic and that domestic revenues in 2020 are projected to be 17.8% below the budget target.
He added that tax revenues are now projected at K47 billion against a budget target of K54 billion representing a decline of 12.7%, while Non-Tax Revenue category is now projected to outperform the budget target of K11 billion by 7.3 % at K12.1 billion attributing the performance to receipts from dividends and on-lending activities.
The Minister further said government spending in 2020 is expected to increase by an estimated K9.7 billion due to increased government spending on Covid-19 related interventions and increased external debt payments adding that external debt service is expected to increase by K2.2 billion.
“Mr. Speaker, the decline in revenues and the increase in expenditures is expected to create a financing gap of K26.9 billion due to a loss of resources amounting to K17.2 billion and an increase in expenditures amounting to K9.7 billion,” He said.
Dr. Ng’andu said the economic situation continued to be challenging and fiscal situation is extremely constrained hence treasury will strive to mobilize more resources to respond to the various competing developmental needs of the country.
The Zambian Business Times – ZBT has challenged governments implementing agencies and officers to automate non-tax revenue collection methods to ensure that the country derives maximum benefits from both revenue engines.
Automated traffic fines for instance was seen as a key technology to enhance the collection of additional traffic related non tax revenue as the set up of using human traffic officers lead to massive revenue leakages and accountability gaps.
Other non-tax revenue measures such as council levies, land and property rates, parking fees and a host of other alternative revenue lines continue being un-optimized due to mostly lethargy and unbridled personal interests by a few government officers who have continued to frustrate efforts to automate.
