PARASTATAL ALLOCATION LOGIC

Sir,

We were shocked to read the budget allocations to parastatals presented in the Times dated March 11, 2019; noting the lion’s share of close to half a billion has been allocated to SRA.

This follows on the heels of a budget that is designed to cripple lower income earners even more – if that’s possible – while dragging down the vital middle sector.

It also follows SRA’s move to its own multimillion Emalangeni (in excess of E40 if I recall correctly) and the publishing of an invitation to tender for establishing a private gymnasium – is there anything wrong with the one down the road at Galleria whose owners no doubt pay taxes?

As Vusi Sibisi so rightly quoted from Churchill in a recent contribution, the gist of which was ‘to heal an economy by increasing taxes is like standing in a bucket of water and trying to pick it up by the handle’.

Now compare this with allocations to two of our most vital parastatals – SIPA and ETA. SIPA struggles against a maze of red tape to attract new investors and despite their efforts, we find ourselves sadly lacking in this department.

Propotions

Note the proportions: CMAC, which should be incorporated into the Ministry of Labour, is allocated more than ETA. Yet figures cannot be denied: globally tourism is one of the fastest growing industries with massive potential for generating incomes both in the formal category and by developing community tourism. Similarly, the National Trust Commission, which takes care of our most precious heritage, which incorporates many tourist attractions, is set to be struggling. Would someone please care to explain the logic of these allocations?

Education establishments, health, sports and arts are mostly similarly cash challenged under these allocations. One could go on and on. Of course there are those parastatals that are income-generating in their own right but apart from those, many could be incorporated into each other and others brought back under relevant government departments.

Disillusioned taxpayer

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