P e r s p e c ti v e

extract from MMS Service 20-July-01


Balancing efficiency and democracy   20-July-01

Summary: Government wants amendments to the Constitution to give the National Treasury more powers at the expense of other departments and possibly the provinces.

There may be a concern that other departments may eg. impose levies. These levies may be sensible in the context of the policies of those departments, but may undermine the integrity of national financial policies. The desired changes to the Constitution means that the introduction of such levies will have to be initiated by the Minister of Finance.

The need for such amendments seems somewhat strange. It must be assumed that any such levies will be considered by cabinet where the finmin can give his view. Why then is a constitutional amendment necessary ? Perhaps there is a desire to centralise financial power in the portfolio that will usually be occupied by an individual that has a predisposition towards financial prudence.

 

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e c o n o m e t r i x 20-July-01