HomeBusiness DigestNAC records massive $50b deficit

NAC records massive $50b deficit

Godfrey Marawanyika

THE National Aids Council (NAC) has submitted to parliament a report which shows that the agency recorded a massive $50 billion deficit during the first quarter of this year.

According to the NAC’s consolidated second-quarter accounts that were submitted to parliament, the organisation received $20 billion as income against a projection of $51 billion.

“The total receipts from Aids levy since the beginning of the year amounted to $47 billion against a budget of $97,5 billion, leaving a deficit of $50,5 billion,” the NAC said.

“The deficit is attributed to levy for the months of May and June that had not been received by the end of the period under review. Hence the estimated receipts for two months of $29,8 billion will push the income for Aids levy to $77 billion as shown in the financial statements leaving a deficit at $20 billion.”

The NAC has a mandate to coordinate the multisectoral response and mobilize resources for the fight against HIV and Aids in Zimbabwe.

The organisation is meant to empower communities to reduce HIV transmission and minimise the impact of the Aids epidemic on families and society. The NAC said the projected deficit of $20 billion was caused by the actual levy receipt that ranged from $11 billion and $14 billion since January, against a budget deficit of $15 billion.

During the quarter under review, income from investments was $9 billion against a budget of $1,8 billion. The increase in income to levels more than estimates was as result to increase in the investment portfolio.

The investment portfolio increased because grants for the second were not paid out since grants disbursed in the first quarter had not been accounted for. Income from investments since beginning of the year was $23,5billion against a budget of $2,8billion.

On the other hand, income from donations was $0,1 billion during the quarter and by the end of the first half of 2005, the figure stood at $0,2 billion. “Payment made during the quarter amounted to $24 billion against a target of $59 billion. $11 billion was for HIV and AIDS against a estimations of $49 billion while $13 billion went towards administration on against a budget of $9,7 billion,” the NAC said.

“Low absorption of grants disbursed in the first quarter resulted in the non-disbursement of grants to District Aids Action Committee in the second quarter thereby contributing negatively to the huge difference between actual disbursements and estimates.”

During the first six months, NAC paid out $90 billion against a target of $118 billion.

Of this amount $49,8 billion was disbursed to organisations that are carrying out HIV and Aids interventions, $25 billion went towards administration while capital items and endowment investments took $4,5 billion and $5 billion respectively.

In the report, NAC executive director Tapiwa Magure said that the interventions that NAC undertook during the quarter under review were constrained by limited inflows of money.

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