Chairperson of Appropriations Committee Maimane calls on govt to reduce wastage
The National Assembly on Wednesday afternoon considered the Division of Revenue Bill, the second hurdle in the budget process.
Chairperson of Parliament's Standing Committee on Appropriations Mmusi Maimane at a finance cluster briefing on the national budget. Picture: Parliament/Phando Jikelo
CAPE TOWN - Chairperson of Parliament’s Appropriations Committee Mmusi Maimane says the government urgently needs to undertake spending reviews to reduce wastage.
The National Assembly on Wednesday afternoon considered the Division of Revenue Bill, the second hurdle in the budget process.
Maimane has hailed the removal of an earlier proposed value-added tax (VAT) increase as a victory for ordinary South Africans, whom he said are just as burdened by debt as the state itself.
The Division of Revenue Bill apportions 42% of State funds to provincial governments, a further 48% to national departments and 10% to municipalities.
However, the chairperson of Parliament’s Appropriations Committee, Mmusi Maimane, said this 90:10 model is not working for service delivery.
“Census results have told us that municipalities are using outdated data models, which distort the provincial equitable share and the municipal equitable share.”
Maimane said the government needs to think harder about alternative revenue sources other than taxes.
“We need to think how we decrease illicit financial flows that continue to drain our fiscus, eliminate wasteful expenditure and corruption.”
Maimane said the committee supports additional support to the revenue service to clamp down on tax evasion.
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