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SACC

SACC. PEOPLE’S BUDGET CAMPAIGN. KEY CONCERNS. ADOPTING THE FISCAL FRAMEWORK AND REVENUE PROPOSALS Section 8(3) Section 8(5) based on conservative fiscal policies. Timeframe.

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SACC

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  1. SACC PEOPLE’S BUDGET CAMPAIGN

  2. KEY CONCERNS ADOPTING THE FISCAL FRAMEWORK AND REVENUE PROPOSALS • Section 8(3) • Section 8(5) based on conservative fiscal policies

  3. Timeframe • 8(3) requires committees to submit a report on the fiscal framework and revenue proposals 16 days after tabling of the national budget. • This timeframe is inadequate for the proper deliberations on both the fiscal framework and revenue proposals • Public participation will not be possible.

  4. Generally at least three weeks notice for public hearings • Even the 3 months that is stipulated in 6(1) for tabling budget after MTBPS is in adequate.

  5. Minister to be given at least 2 days to proposed to fiscal framework and revenue proposals • 2 days inadequate if there are major amendments

  6. Other issues – unclear and unnecessary clauses The People’s Budget believes that: • This legislation is largely about setting up a procedural framework for Parliament in considering money bills, providing a mechanism for effecting changes where necessary. • Therefore, any legislation and in particular this bill must be clear, unambiguous and its clauses must be necessary - rather than some frivolous attempts to insert unnecessary ideological agenda.

  7. Unclear and unnecessary clauses cont.. • Therefore, the PBC campaign believes that if you are to insert prescriptions in legislation – then they must defined - so that they could be meaningfully understood as to their parameters - in order to be complied with. • Otherwise, if you are unable to do that – they are unnecessary to be in legislation.

  8. Adopting the fiscal framework and revenue proposals • Section 8. (5) (a) Ensure that there is an appropriate balance between revenue, expenditure and borrowing; • Firstly, what is meant by this? • Secondly, in any budget there is always a balance (difference) between revenue collected and budgeted and spending. • And such a difference is called deficit, if the budget is not balanced or there is no surplus. • Is this an attempt to insert “appropriate deficit” ? The law must be clear.

  9. Unclear and unnecessary clauses cont.. Section 8. (5) (b) Ensure that the costs of recurrent spending is not deferred to future generations; If the idea is to protect future generations from inheriting unnecessary liabilities or debt burdens, the PBC agrees in principle, but then:

  10. Unclear and unnecessary clauses cont.. • What is the rational or logic of limiting the clause to recurrent spending, why not capital spending? • How is this recurrent spending defined, beyond the misleading Neoliberal conceptions?

  11. Unclear and unnecessary clauses cont.. • Capital-spending is almost invariably linked to recurrent spending, e.g. Spending in items such as health, education, etc. - schools, roads, hospitals, etc. or vice versa. • Yet, already there are many vanity mega-projects causing unnecessary and on-going burden on takes payers, PMR as an example. • This is a relic of Neoliberal mindset – that believed that social spending items were not investment. Hence, now we have fallen behind in education, skills development, health, social development, - in fostering sustainable economic growth.

  12. Unclear and unnecessary clauses cont.. Therefore, PBC is suggesting that: • These notions must be defined. Or in respect of 8. 5 (b) the clause should be broadened to cover irresponsible capital spending. • Otherwise they are meaningless other than some attempt to constrain democratic mandates within conservative straightjacket. They should be deleted.

  13. THANK YOU

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