The Treasury of Zimbabwe says that it continues to find it difficult to finance the continued operation of the government because the income it is due from taxing diamond companies operating in the country has not been forthcoming, Rough and Polished reports.

Zimbabwe Ministry of Finance acting secretary Judith Madzorera told a parliamentary committee on budget, finance and investment promotion that although the government expected to collect over $400 million altogether on non-tax revenue, it received only just over half of this amount, stating that the shortfall was $190 million. Zeroing in on the cause of the shortfall, Madzorera said the state should have received $239 million in taxes from diamond miners operating in the country, but it managed to collect only $44 million from them.

Last July Zimbabwe Finance Minister Tendai Biti said that due to a shortfall in income from the diamond industry, the government was forced to raise taxes and cut government spending.