Revenue menace

SECTION 227 of the constitution reserves a share of the revenue raised nationally for local government. This is accommodated in the Division of Revenue Act of 2005.

The act requires that revenue is distributed equitably in relation to the national, provincial and local government. The money thus received must assist low-income households to access basic services by buttressing municipal operations and building infrastructure such as roads, houses and a water and sanitation system.

A reduction of R13.8 billion, if approved by Parliament, will in real terms be more like lopping off R20bn. It does not take rocket science to understand the impact of such a cut-back on social stability. As it is, it is councillors who are at the coalface, and it is their houses that are being torched, and their lives being cut short. Public anger is increasing because of the increasing pressures of sustaining life with dignity. An increase in VAT will only exacerbate the situation.

The plain fact is that it is the government that needs to take the pain. President Ramaphosa indicated that the government has to be downsized. He must get on with that job right away.

Consumption side expenditure has seen government debt breaching the trillion-rand ceiling, and heading towards R2 trillion. The fact that at present the daily cost of servicing the debt, that is the interest on debt, is half a billion rand. If that R500 million a day was not being set aside to service the debt, infrastructure would have been created at a rapid pace and the economy would have been accelerating. Every party in Parliament must reject the contemplated reduction in local government’s share of revenue. Services must come before keeping cadres in high positions. The network of patronage must be pulled apart so that society can flourish and cohere. FAROUK

CASSIM (COPE)

Milnerton