FF Plus Fiscal Policy Framework: Proposals for a prosperous economy
23 October 2017
South Africa currently finds itself in an unprecedented economic crisis due to the ANC government’s mismanagement and transgressions.
Against this backdrop, the FF Plus has come up with a thorough fiscal policy framework with innovative proposals to get the country’s economy back on track towards prosperity.
According to Dr Pieter Groenewald, leader of the FF Plus, the country’s economic crisis is so extensive that progressive reasoning and actions are needed to stimulate economic growth.
One of the proposals is to establish a Fiscal Commission (FC), which will be similar to institutions in, amongst others, the USA, the Netherlands, Belgium, Austria, Denmark, Canada and Japan.
The task of the FC will be to act as an independent institution that will oversee fiscal policy, similar to how the Reserve Bank currently oversees monetary policy in an independent manner.
In addition, the fundamental principles of the free market system are emphasised because the FF Plus is of the opinion that only a true free market system, without government interference and other related obstacles, can lead to maximum economic development.
The significance of private property rights is also highlighted as it is the cornerstone of the free market system and without it there will be no incentive to trade in South Africa.
Some of the other points discussed in the document are a smaller and more functional government, state institutions that are free of corruption, better policing, education and health care services, a fair tax system and appointments made on merit alone.
According to Dr Groenewald, the FF Plus considers the FC of the utmost importance to ensure that the government’s over expenditure is curtailed in the interest of the tax payer and to ensure that the country is not driven over the fiscal edge.
Issued by Pieter Groenewald, FF Plus leader, 23 October 2017