Budget cuts necessary There is a need to accelerate State-owned-enterprises’ reforms to support investment opportunities in the market while government ministries will have to do more with less. These were the remarks made by the finance minister Calle Schlettwein when he replied to comments made by members of parliament on the Appropriation Bill.
Schlettwein also emphasised that the proposed expenditure cuts are comprehensive and added that it is necessary from sustainability and timeliness perspectives.
When Schlettwein tabled the mid-term budget last month a number of parastatals had their budgets slashed while a number of capital projects were put on hold.
“We will also maintain policy coordination between fiscal and monetary policy to support the adjustment period, while catalysing opportunities for greater private sector participation in the economy. The proposed speed of fiscal consolidation only reinforced the actions that government has initiated already,” said Schlettwein.
He also highlighted that the provision of modern taxpayer services to all the taxpayer community and upgrading of tax assessment and audit skills are important areas of action and institutional reforms.
“We have segmented taxpayers in various categories in order to better manage and administer the provision of taxpayer services to the specific categories of taxpayers. As such, the large taxpayers resort under the large taxpayers office with associated skills needed to provide services and conduct appropriate assessments at that level,” said Schlettwein.
According to him the country’s large taxpayers office is receiving technical assistance from Finland and further audit capacity development to strengthen it to fight illicit financial flows and to address revenue base erosion.
JEMIMA BEUKES