Published: 24 April 2014

Economic analysts say government's recurrent expenditure that accounts for 95 percent of total expenditure is a reflection of revenue underperformance and must be dealt with as a matter of urgency.

Government's total expenditure which stood at $730 million during the first quarter of 2014 has been cited as a source of concern with growing calls for the fiscal authorities to come up with macro-economic policies which broaden the revenue base and stimulate the productive sectors.

Figures released by the fiscal authorities indicate that the total re-current expenses for the first quarter stood at $730 million while capital expenditure was a mere $23,4 million.

A total of $445,7 million was channeled towards employment costs.

Economic analyst, Mr Washington Mehlomakulu told the ZBC News that the increase in the current expenditure bill as a percentage of the total expenses is alarming and a clear reflection of revenue underperformance.

"The figures are clearly shocking and a major source of concern. At 95 percent of the total expenses, this is clearly a source for concern," he said.

Another economic analyst, Mr James Wadi said the reduced capital expenditure during the first three months of the year is reflective of an economic slowdown and stressed the need to attend to the manufacturing and the export sectors.

"Clearly, the capital expenditure is relatively low, meaning that not much has been spent on key capital projects. We need to look at all aspects of our economy in order to arrest the challenges facing the economy in particular the revival of the export and manufacturing sectors," Mr Wadi said.

The Zimbabwe Revenue Authority (ZIMRA) managed to raise a total of $834,6 million during the first quarter, a figure which analysts say is still insignificant given the budgetary pressures and the huge current expenditure.

Apart from austerity measures, market analysts say there is need for the government to attract foreign direct investment, broaden the revenue base and to attend to the underperformance of the manufacturing sector.
- zbc

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