Revenue decrease by K2.2bil

THE latest economic forecast indicates a K2.2 billion decrease in internal revenue, according to Treasurer Ian Ling-Stuckey.
Ling-Stuckey said in parliament yesterday that this was the result of the significant impact of the Covid-19 pandemic.
He was responding to questions from Kandep MP Alfred Manase, who asked about the impact of the Covid-19 on the country’s revenue.
“If you look back on our revenue numbers for this year’s budget, our revenue figures were forecast at K14,095 billion,” Ling-Stuckey.
“The latest econometric forecast that we’ve received from the IMF (International Monetary Fund) working with all our other multilateral and bilateral friends, there is a revised number for the decrease in revenue.
“We had announced revenue would drop by K2 billion but the revised figure is K2,222 million or K2.2 billion downward revision on our revenue.
“What that means specifically, if you look at the breakup of our K14,095 billion in revenue, you will see that tax revenue forecast this year sit at K11,308 million.
“So you take off K2,222 million from that figure, you’ll end up with about K9,086 billion, that’s the specific effect and the new revised figure for revenue.”
Manase also asked how the government intended to fill the revenue gap and if there would be a supplementary budget tabled.
The Treasurer indicated that the revenue gap would be filled through interventions which would include more borrowing and that there would be no need for further expenditure.