GOVERNMENT revenue collection has reduced due to unforeseen external shocks in the economy, says Ministry of Finance permanent secretary Ronald Simwinga.
Responding to Katombola Member of Parliament Derrick Livune who wanted to know the challenges faced by the ministry in collecting resources to finance the national Budget, Dr Simwinga said unforeseen economic shocks had posed a challenge in collecting taxes.
This came to light when the Ministry of Finance was making submissions to the Parliamentary Committee on Economic Affairs.
“Yes, there has been a challenge particularly in the last year and I did allude to the state of the economy. A budget is a budget just like at national level which is actualised from resources,” he said.
Dr Simwinga said the economic shocks had resulted into the public not paying taxes, hence affecting the revenue collection which financed the national Budget.
“Resource collection is a random thing, you may collect the resources as you plan to collect or you may not collect them as planned based on the dynamics of the economy.
“Over the recent period, it so happens that because of unforeseen shocks of the economy, we have seen those shocks translating to the revenue side; people not paying taxes as they are supposed to pay, making taxes not coming through as they are supposed to,” he said.
Dr Simwinga said most countries at some point experienced a less revenue collection as projected due to a number of reasons.
“People are not paying taxes due to these economic shocks and you will find that at the end of the day, you have less resources on the expenditure side, so you have to rationalise how much is released. This has posed a challenge in mobilising resources for the Budget,” he said.