THE country was behind its revenue collection target by close to Sh100 billion by end of March, government data shows.
According to the Treasury’s latest issue of the quartely economic and budgetary review, total cumulative revenue collection including appropriation in aid, was below the target by Sh98.2 billion.
Ordinary revenue collection amounted to Sh 531.6 billion against a target of Sh610.4 billion, resulting in an under performance of Sh78.8 billion.
Cumulative ministerial appropriation in aid recorded an under performance of Sh 19.4 billion for the period under review, the report released on Friday says. Appropriation in aid include the road maintenance levy fund and funds from the from the universities.
The report shows that value added tax for imports missed the target by the highest amount only managing to raise Sh68.8 billion against a target of Sh87.5 billion.
The VAT for local category missed the target by Sh16.5 billion to raise Sh65.6 billion against a target of Sh82.2 billion.
The government also collected less than expected revenues from the pay as you earn category missing the target by Sh8.6 billion. PAYE, which is taxed on every salaried employees, raised Sh141 billion against a target of Sh149 billion.
Also missing the target was the import duty category which collected Sh42.4 billion against a target of Sh50 billion, missing the expectation by Sh8 billion.
The Kenya Revenue Authority also failed to raise more than Sh3.4 billion as exercise only managing Sh63 billion against a target of Sh66.5 billion.
In addition, KRA missed the target in the other income tax category by Sh7.5 billion, managing to raise Sh102.5 billion against a target of Sh110 billion. Revenues from the traffic department also grew at a lesser pace than was anticipated raising Sh1.9 billion, against a target of Sh2.4 billion.
Taxation from sectors such as aviation, land, forest, mining, rent of buildings, trade licenses, fines and forfeitures, reimbursements and other fund contributions as well as miscellaneous revenues were behind target by Sh6.1 billion. A total of Sh23.7 billion were raised from these sectors against a target of Sh29.8 billion.
For the period, total expenditure and net lending amounted to Sh792.9 billion, against a target of Sh 940 billion.
“The shortfall of Sh147.1 billion was attributed to lower absorption recorded in both recurrent and development expenditures by the line ministries,” said the report.
Recurrent expenditure amounted to Sh572.7 billion, against a target of Sh588.6 billion, with underperformance recorded in operations and maintenance, and pensions, which accounted for Sh17.5 billion, and Sh14.3 billion, respectively.