Outa’s proposals could save South Africa billions

In today’s brave new political world of a government of national unity (GNU), it is important that unbiased, competent civic society organisations continue to make inputs on the problems facing our country.

That’s because, unlike the political parties, their views will not be muted by the need to attract votes.

It is encouraging to see the Organisation Undoing Tax Abuse (Outa) rolling up its proverbial intellectual sleeves to come up with some solid proposals about how the government should, ahead of the budget on Wednesday, go about finding the money.

It has already been made plain, by both Finance Minister Enoch Godongwana and economic experts, that South Africa has run out of options to finance its terrifying budget deficit.

The only option the GNU seems to have come up with was a proposed two percentage point increase in VAT – a measure so extreme that it derailed the original budget speech last month.

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It goes without saying that such a huge increase in VAT will hit the poor hardest… while it is also true that the GNU – they’re all in this together – failed to bite the bullet and cut government spending.

Outa proposes 13 different areas in which savings can be made. Not only will the savings – and recoveries for Treasury – be easily able to cover the R58 billion budget shortfall, they will also, claims Outa, bring in more than R500 billion annually within two years.

There could also be an initial saving of up to R650 billion, it argues.

Much of what the organisation proposes involves common sense in deflating the massive inflationary bubble of government inefficiency and its associate, corruption.

Outa’s proposal, though, amounts to much more than just a way to save money. It is nothing less than a blueprint for good governance.

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