Finance under a Direct Democracy Forum (DDF) administration will extend into all elements of government, not just budgeting and the fiscus.
The DDF want to make national finances and expenditure more understandable and reporting more timeously available to taxpayers and make budgets more effectively applied at all levels of government. To this end it will be adopt the following measures:
- Implement TEAL as the only source of state revenue.
- Use TEAL surpluses to eliminate the national debt and free the country of the burden of servicing this debt. Currently (2011/2012) sitting at about 1.3 trillion rand this debt is costing SA taxpayers about 100 billion rand yearly in debt service fees.
- The TEAL Foundation did an exercise in 2010 for the period 2006 to 2013 substituting TEAL for conventional state income. This made possible the theoretic reduction of the national debt of about 478 billion at 2006/7 y/e at a rate of 100 billion p.a. for 5 years, to Nil by 2011.
- Over the 6 years to 2013 a theoretic 380 billion in Debt Service Charges was saved.
- That represents about
- 3.8 million houses at R100 000 per house or
- 38 thousand schools at R10 million per school or
- 3800 hospitals at 100 million per hospital.
- The base today (2012) is 1.3 trillion rands national debt (3 times the debt in 2007) so one may need to increase the TEAL rate to 3/4% or even 1% to achieve the same goal in 5 or so years, starting 2014 or whenever, but it would be worth it just to free the country of that terrible yoke and have some real financial choices open to the country.
- Introduce regular accounting processes normally found in the business world where income and expenditure are recorded by month, consolidated across departments and measured against budgets and reported at least quarterly to the shareholders (in SA’s case to the country’s taxpayers). For support of this position read what Prof Niall Ferguson has to say on the subject of government accounts – he uses the word ‘fraudulent’.
- Re-skill otherwise redundant SARS employees as public service accountants and auditors and deploy them as accounting and internal auditing officers to all government departments, at national, regional and local levels. They will be responsible for implementing and monitoring the new accounts processes referred to above.
- Coordinate with the Public Works Departments and municipal authorities for the effective application of budgets at ground level to ensure timely and effective service delivery.
- Monitor and report on all public tenders and public works.
- Provide real-time continuous internal audits at all government departments and co-ordinate with the office of the Auditor General to enable him to effectively exercise his independent duties at all levels of government.
- Finance the private sector so as to
- Stimulate the economy
- Create Jobs
- Create education and training, particularly of those generations effectively sidelined by poor employment and skills strategies
- develop private sector involvement in provision of public sector services, on merit only, including but not limited to education, health care, public transport, communications and so on.
- Adequately finance the public sector so as to upgrade and up-skill the services they provide South Africa, particularly in areas where it is not ordinarily profitable for private sector involvement.
Through DDF policies, tighter control of government expenditure and targeted economic stimulation will occur, in collaboration with upliftment and empowerment policies intended to draw the unemployed and under-educated and under-skilled population, into mainstream economic activity, so they are able to uplift their lifestyles, gain dignity and become contributors to, rather than drains on, the economy and society at large.