Government misses revenue collection target

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Government misses revenue collection target

1:49 CAT | 20 Feb 2019

Photo: O País

The volume of government revenue collection was lower than expected in the last financial year, with an implementation rate of 95.1%, according to the budget execution report from January to December 2018.

Specifically, revenue collection amounted to 211,922 million meticais in 2018, missing the target set by 4.9%. Revenue collection however remains the state’s main source of finance since the freezing of direct aid to the State Budget external donors since April 2016.

The contribution of internal revenues to the State Budget is equivalent to 75.1% of the total resources mobilised by the state last year, with external credits, internal credits, external donations and capital gains contributing 10%, 5%, 6.8%, 5.1% and 2.5%, respectively.

Expenditure

Overall, total state expenditure for the period from January to December 2018 stood at 282,077.4 million meticais, corresponding to 91.8% of the annual budget.

In order to cover the deficit, the state had to resort to 7,067.3 million meticais of the revenues from capital gains collected in 2017 and also to internal and external financing in the amounts of 19,051 and 44,167.2 million meticais, corresponding to 99.2% and 72.6%, respectively.

VAT collection

The total amount of value added tax (VAT), in gross terms, reached 65,096.4 million meticais in the period, with repayments amounting to 10,743.2 million meticais, resulting in a net VAT of 54,353.2 million meticais.

The collection of this tax in the so-called Internal Operations stood at 29,130.5 million meticais, corresponding to 115.6% of the targets set and a nominal growth of 12.1% against the same period of 2017.

This performance is explained by the continuous work of raising awareness, tax education and also by checking the billing in commercial establishments, markets, also covering rural areas.

Regarding VAT in External Transactions, 35,965.8 million meticais was the amount collected, corresponding to 99.9% of the annual forecast and a 24.6% growth over the same period last year, as a result of impact of technical and administrative measures to control and reduce tax benefits and also of the evolution of import volumes.

By Edson Arante

Source: O País