The Financial Fiscal Commission (FFC) and its role in South Africa.
The Financial Fiscal Commission (FFC) responsible to make recommendation to government on the equitable (fair and impartial, valid in equity as distinct from law) division of revenue between the three spheres of government and provide advice to organs of state on financial matter, in its report published yesterday categorically states that the current way in which government is pending money can’t be sustained (uphold or confirm the validity of justice of it)
Specifically referring to service delivery, it highlighted that over 3000 protest marches were staged in 2011, on the failure of government to address service delivery, or unfulfilled and empty promises.
In 1996 the backlog on the supply of RDP houses was 1,5 million, when the population and those that qualify for it, was 39 million, which represents 3,84615% of the beneficiaries. In 2001 this increased to 1,8 million and now in February 2013, it stands at 2,1 million on the backlog of delivery the so called ‘free houses’ – representative of 5,12195% of the population of 41 million that qualifies for it. An increase of 1,27580%!
To service this backlog would cost the government R 800 billion, and with only R 30 billion being allocated per annum to the supply of RDP house annually, it will take the government 26 years to service the backlog of 2013, so 2039, and then the population might be 50 million, so the Government can never provide on its promise to deliver all the ‘free houses to people’ but taken the facts and figures, we need to realize that those promises are empty in substance (solid base in reality and or fact) and can never be achieved or materialized.
R 30 billion can only build 75 000 houses a year, so the objective that the ANC so conveniently politicize can never happen!
The FFC says it need to quadruple its R 30 billion per year to R 120 billion just to try and eradicate the backlog, and then no provision is made for new applications, which we all know is not possible.