The report states that the government realized net revenues amounting to US$1, 074 billion, marginally surpassing the target of US$1,031 billion.
“On the other hand, net expenditures of US$914,4 million, were contained within the planned target of US$956,7 million. Accordingly, a cumulative surplus of about US$160 million was registered,” the bank said.
“Of the net government revenue, tax and non-tax revenues contributed US$985,7 million and US$88,6 million, respectively while current and capital expenditures contributed US$836 million and US$55,2 million to net government expenditures, respectively,” ADB said.
In the same report, ADB said gold deliveries by both primary and small-scale producers amounted to 4 946,2 kg, on the back of favourable international gold prices.
The report said the contribution of the diamond sector has been undermined by delays in reaching consensus on whether or not Zimbabwe should export its rough diamonds by the Kimberly Process Certification Scheme (KPCS).
The report also said Annual money supply (M3) growth, defined as total bank deposits, increased by 49,2 per cent in May 2011 from 236,3 per cent in 2010.
“On a monthly basis, M3 growth increased by 5,1 per cent in May 2011, from 0,9 per cent in April 2011. Money supply growth is underpinned by improved bank deposits and increased bank lending. Annual total banking sector deposits, which are net of inter-bank deposits, increased by US$0,9 billion (49,18 per cent) from US$1,83 billion in May 2010 to US$2,73 billion in May 2011,” the bank said.
On a monthly basis, ADB said bank deposits increased by 5 per cent from US$2,60 billion in April 2011 to US$2,73 billion in May 2011.
Of the total banking sector deposits (US$2,73 billion) in May 2011, demand deposits, savings and short-term deposits, and long-term deposits amounted to US$1,58 billion (57,88 per cent), US$0,88 billion (32,23 per cent) and US$0,27 billion (9,89 per cent), respectively.
“The composition of the deposits, the bulk of which are demand and short-term deposits is, however, unfavourable for long-term investment,” said ADB.
The bank said of the total credit to the private sector amounting to US$2,2 billion in May 2011, loans and advances to the private sector accounted for 80,8 per cent of the credit, which is favourable, as the bulk of the credit was utilized for working capital and sourcing of raw materials.
Post published in: Business