Is there
anyone in government who can do even simple arithmetic, let alone interpret
what the numbers mean? Their own National Treasury dutifully publishes the data,
but no one seems to notice or care. Just the simplest of spreadsheets will
reveal that the R1.3 trillion of tax collected in the past 12 months is a mere
3.8% more than the equivalent total a year ago. Revenue is growing slower than
almost anything except the Eskom chairman’s understanding of the business of
generating electricity. Crucially though, the rate at which cabinet is spending
money is 6.8%pa. Which is the fact that should be ringing loud alarm bells in
the corridors of power. We have been warned to expect to be burdened with
further tax increases that could be announced in the Medium-Term Budget Policy
Statement next Wednesday. And doubtless they are coming. However, the place to
tackle the budget deficit in our already egregiously overtaxed nation is on the
spending side. But that’s utter anathema to politicians particularly those
imbued with the mantra that “it’s our (and our buddies) time to eat”. But most
of them probably subscribe to the view, offered by the Minister of Transport in
the midst of nationwide flight cancellations, that “there is no crisis.”
Meanwhile the
World Bank has handed down its latest Ease of Doing Business report and no one
who has tried even to renew a licence will be surprised to learn that SA has
slipped even lower in the league. Undoubtedly President Cyril was able to turn
down the Russian nuclear power plant salesman Putin by telling him that it
would take years to obtain and complete the correct form to apply to build one.
South Africa does
however rank high in sports like rugby, netball and political mudwrestling. To
an outsider it seems that the ruling party is in sufficient disarray for any
half sensible opposition to take advantage of the gaps. Instead they too are
indulging in internecine warfare even fouler and fiercer than that roiling the
ANC. Most of this is being played out by tax-eaters who seem unconcerned that
this foolish grandstanding is destroying our hopes of becoming once again a
proud nation.
Reportedly in
common with many other countries our central bank is investigating the idea of
a digital currency. Presumably this is about extending state control and surveillance
of our lives and activities with a particular need to seek out tax evasion. Anecdotal
evidence points to staggering numbers of sizable transactions, including cars
and other large items, being concluded with the folding stuff. Obviously, this infuriates
and alarms government. However, with more and more people losing formal
employment and being forced to start micro businesses, any opportunity to keep transactions
private is welcome. Even in those cases where employees are paid electronically
their first stop on payday is the ATM to turn their salary into cash. Just
drive past the banks in any small town to witness that behaviour. And then of
course there’s the interesting matter of wide scale power cuts that often seem
to happen just as one hopes to push the “Enter” key on the internet banking app.
Minister Mboweni might find digital currencies a difficult idea to sell.
Our family
has a branch who recently moved to live on the beautiful Pembroke peninsular is
south west Wales. Instead of staying at home and risking a nasty feud when the
bokke play the boyos in red this Sunday in the RWC semi-final I shall be in the
bush with out any TV or even much cell phone coverage. I will also be ignorant
of the England vs All Blacks outcome. Or the Mexican Grand Prix. I trust that I’ll
get a few lifers for the bird list in reward.
James Greener
Friday 25th October 2019
