What makes a country go round and bigger or smaller.
The government is those folks that get to spend what citizen pay as tax: call it VAT, payee, company tax etc. They spend what we voluntarily or rather involuntarily pay. Sometimes they take it from your employers; sometimes when you buy something at Clicks. They take it and they spent it.
Do government officials give any consideration that the fiscal at their liberty is actually a collective scheme funded through some form of work? For good sake we are tax billed close to 40% of our salaries.
Our GDP grows every twelve months. Every year taxes are raised on different products. The fiscal enlarges.
What happens in a situation where job losses and unemployment spiral to devastating levels? Like our current situation. Job losses effectively mean loss of taxes. On another hand; the fiscal-collecting ministry will (as usual) increase taxes come next year February.
Of course government always has and should have ambitions to develop the economy. It’s their job. When the GDP improves; government tax collection also rises. What happens in a case where GDP decreases and development ambitions are disappointed?
The likelihood is that taxes would be increased to meet up such development ambitions; which in many cases seem to be treated in isolation to the economy’s performance (it seems).
It’s the role of government to make sure prosperity in the economy is targeted using state resources (policies, reserves etc).
The nearest logic is that; *if the nature of your business is to spend in order to achieve growth; where such spending is on the nation’s account (taxes). It is therefore your task to make sure development takes shape; takes shape in all sectors of the economy e.g. arts, sports, IT, tax, manufacturing etc since all this people contribute towards the fiscal.
What I’m saying to government is; they are put in office to manage the country’s national contributions to serve common interests. The inalienable interest here growth.
If economic growth delays and compromises development aspirations; since revenue collections would not have met targets; is it then fair to increase the tax burden or any other means of collecting revenue on tax payers?
The closest example is the #etoll situation. The ambition is to meet developmental needs; but resource wise; the fiscal can’t fund such ambitions. Thank goodness the courts didn’t allow such a burden to be passed on consumers directly through tollgates.
Does what we have match what we need?
Of late I hear a lot of sporting codes are lacking in the department of attracting sponsorship. Another one is that we are net importers of food.
What is the role of the minister of sports or agriculture? Is it just to administer these codes of governance? Remember these people are salaried through the country’s collective scheme (taxes).
These folks should have the know how of turning stone into water. They should possess some entrepreneurial finesse.
For instance the role of the minister of sports should be to put framework in place so that all sporting codes are succeeding. The minister of agriculture should work on reducing the net imports of foods. It could be through supporting (many ways) local farmers. And importantly; the reduction of net imports means more jobs for locals and increase in the GDP.
Here is what the general secretary was quoted saying earlier in the year: At the ANC's top officials' press conference, Mantashe lashed out at Khoza:-
"[Khoza] is venturing into something he doesn't know. What I can tell you about him, he is actually on the wrong platform, he must talk about business and Nedbank in particular, thank you very much."
An easy decoding of this statements by Gwede Mantashe is that Reuel Khoza should stay in his lane that is business; not politics.
Well; Mr Mantashe it seems the ANC’s politics (government) is not winning in creating jobs but gladly accepts revenue in the form of taxes.
Society (individuals, community, business etc) informs direction of where government and politicians should lead.
If politicians start thinking they are in government just to be politicians and not grow the economy; they are wrong people to be in our government.
Truth of the matter is we need a kind of leadership (me and you) that takes example from the need to progress. Problems are solved by applying solutions not position. As black 25 year old in this country; I do acknowledge that; especially our black political leadership; tends to be blinded by entitlement.
Therefore; in South Africa; the inalienable role of the governing political party is to grow the economy. If they fail at that; they are failing a purpose for which they took power for. Meaning; governing officials should be folks that can deliver inexcusable progress. If the ANC can’t deliver such leadership today; they are wasting time; time which unfortunately is survived by poverty and pain.
Tiisetso is an entrepreneur; a scholar in development economics and culture marketing. Follow him on twitter @tiisetsomaloma