FINANCE Minister Tendai Biti says national revenue inflows have underperformed since the beginning of the year, affecting the implementation of planned Government programmes.

Addressing the media on post-budget developments in Harare yesterday, Minister Biti said Government projects were affected by below forecast inflows from diamond sales and a sharp increase in the civil service wage bill.

“Budget support for service delivery in such areas as health, education, agricultural extension services and social protection and rehabilitation and construction of capital projects was therefore compromised,” he said.

The limited inflows, Minister Biti said, meant that he had not budgeted for elections this year, but set aside funds for a constitutional referendum and a national census.

His utterances contradict President Mugabe’s statement that elections will be held this year, with or without a new Constitution.

Minister Biti said his Mines and Mining Development counterpart Obert Mpofu had indicated that inflows from the sale of Marange gems would, however, boost natio-nal coffers this month.

Actual revenue collections for January and February totalled US$488 million against targeted inflows of US$549 million.

Inflows from diamond sales amounted to only US$19,5 million against a projection of US$77 million as no auctions were conducted in January and February.

Last month, collections totalled US$227 million against forecast inflows of US$270 million while expenditure weighed in at US$286 million against the US$269 million approved expenditure framework.

Of the total expenditure, US$254 million went to recurrent programmes with the Government’s civil service wage bill accounting for US$187 million.

In fact, US$229 million was eventually paid in civil service wages due to salary arrears from January when Government workers got a pay rise.

Minister Biti said a huge Government wage bill was clouding capital projects as salaries gobbled 70 percent of the inflows.

But increased revenue inflows are expected this month after diamonds were finally sold and Minister Biti anticipates US$320 million in collections, with diamond sales accounting for US$41 million. Pressure on fiscal resources saw Treasury disbursing US$29 million for capital projects that included infrastructure, payment of farmers for wheat deliveries and settling arrears to seed and fertiliser producers.

Revenue inflows will have to improve significantly, especially from diamonds, to sustain the country’s US$800 million budget for capital projects.

Minister Biti said President Mugabe had appointed Mr Khupukile Mlambo and Dr Charity Dhliwayo as deputy governors of the Reserve Bank of Zimbabwe.

He said Mr Dzinotizei Mutasa, Mr Brains Muchemwa, Dr Rudo Faranisi, Mr Kennias Mafukidze and Professor Tony Hawkins will constitute the central bank’s monetary policy committee.

This has been done as part of reforms to enhance RBZ’s performance, including measures to recapitalise the apex bank.