Finance Committee Report on 2012 Fiscal Framework and Revenue proposals

Meeting Summary

The Committee went through the report suggesting amendments and recommendations and then adopted the Report. Recommendations were made to various Ministers: Detail on the time frame and plans for the construction of the two new universities was requested. Treasury was asked to contain the state wage bill and commit to a spending shift from consumption to capital investment. There was a request to the Minister of Energy to contain the rise in electricity prices. The Department of Health needed to provide a detailed plan for improving governance and tackling the skills shortage before money was shifted to the National Health Insurance. The Minister of Finance should reflect on the issue of capacity (especially to local authorities) before allocating funds. It was recommended that within two months National Treasury provided clarity on the legality of the dividends tax rate being 15% with immediate effect.