Multiple levies distort budget accountability
Friday, May 02, 2014
Finance Minister Kenneth Matambo
In a 2014 first quarter economic review report, Jefferies together with his Econsult colleagues Bogolo Kenewendo and Thabelo Nemaorani say that the levies are a form of a hidden tax and are generally frowned upon from a public finance perspective.
As at 2013, there were 37 special funds in existence, 19 of which are financed through levies that the government imposes on different activities.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...