Hendriks, Christoffel Jacobus
English: This thesis explores South Africa’s intergovernmental fiscal relations, and in particular the impact of a vertical fiscal imbalance on responsiveness and accountability in the Northern Cape Provincial Government. In South Africa the government is comprised of three spheres, namely the national, provincial and municipal spheres of government. Each of these spheres of government is responsible for performance of a number of functions that can either be exclusive, in other words performed by only one sphere of government, or concurrent, thus shared between different spheres of government. The provincial government sphere is responsible for providing certain services such as health, education and provincial roads, and promotes other services such as economic affairs, tourism, transport, sport, arts, culture, science and technology. In order to deliver its mandate, each of the three spheres of government needs financial resources to enable it to perform its functions. These functions are financed by means of different taxes, such as personal income tax, value added tax, customs tax and property taxes, to mention a few. In South Africa, the bulk of the revenue collected by means of the different taxes, is collected by the South African Revenue Services on behalf of the national government. Provincial governments collect as little as 3% of their total revenues. The reason for this is that the tax base for provincial governments is narrow, and limited to items such as motor vehicle licenses, gambling, gaming taxes and other revenue items such as patient fees. The gap that exists between own-revenue and revenue needed is known as the vertical fiscal imbalance, which is made up by various transfers from the national government to provincial governments. Although other countries in the world experience similar trends, the ratio of own-revenue collected by provinces in South Africa is unprecedentedly low. Transfers from the national government to the provincial governments therefore became the major source for financing the expenditure of provincial governments. Existing theory indicates that a vertical fiscal imbalance has two major implications for provincial governments. The first relates to the potential loss of responsiveness, and the second but not less important implication, is the loss of accountability. It is therefore important that measures which exist to promote responsiveness and accountability are applied effectively, economically and efficiently. Based on a literature study, as well as a survey and interviews conducted in the Northern Cape Provincial Government, this study concludes that the vertical fiscal imbalance has an impact on the responsiveness and accountability of the Northern Cape Provincial Government, and that existing measures to promote responsiveness and accountability can be applied more effectively, efficiently and economically. The thesis therefore provides a set of recommendations based on the empirical study and literature research on the issue, with the view to improving the status quo, not only in the Northern Cape, but in South Africa as a whole. This is relevant as responsiveness and accountability are two fundamental features of democratic governance, and both concepts form part of the values on which the Republic of South Africa is founded. The two concepts are also central elements in discussions concerning good governance.
Afrikaans: Hierdie tesis ondersoek Suid Afrika se interowerheids-fiskale verhoudinge en in besonder die impak van ‘n vertikale fiskale wanbalans op responsiwiteit en aanspreeklikheid in die Noord Kaap Provinsiale Regering. In Suid Afrika bestaan die regering uit drie sfere, te wete die nasionale regeing, provinsiale reging en munisipale of plaaslike sfere van regering. Elk van hierdie sfere is verantwoordelik om ‘n aantal funksies uit te voer wat of eksklusief – met ander woorde verrig deur slegs een sfeer - of gelyklopend – gedeel tussen verskillende sfere van regering uitgevoer kan word. Die provinsiale regeringsfeer is verantwoordeklik om sekere dienste soos gesondheid, onderwys en provinsiale paaie te lewer en ander dienste soos ekonomiese aangeleenthede, toerisme, vervoer, sport, kuns, kultuur, wetenskap en tegnologie te bevorder. Ten einde aan hulle mandaat te voldoen, benodig elk van die drie regeringsfere finansiële hulpbronne om hulle in staat te stel om dienste te lewer. Dienste word gefinansier deur belastings soos persoonlike-inkomstebelasting, belasting op toegevoegde waarde, aksysnsbelasting en eiendomsbelasting om slegs enkeles te noem. In Suid Afrika word die grootste gedeelte van die inkomstes wat deur belastings ingesamel word deur die Suid Afrikaanse Inkomstediens namens die nasionale regering ingesamel. Provinsiale regerings samel so min as drie persent van hulle totale inkomste in. Die rede hiervoor is dat die belastingbasis van provinsiale regerings nou is en beperk is tot items soos motorvoertuiglisensies, dobbelbelasting en ander inkomstes soos pasientgelde. Die gaping wat bestaan tussen eie inkomstes en inkomste benodig is bekend as die vertikale fiskale wanbalans en word gevul deur verskillende oordragte vanaf die nasionale regering na die provinsiale regerings. Alhoewel ander lande in die wêreld soortgelyke tendense ervaar is die verhouding eie inkomste wat deur provinsies in Suid Afrika ingesamel word ongekend laag. Oordragbetalings vanaf die nasionale regering na die provinsiale regering het daarom die belangrikste bron van inkomste geword vir provinsiale regerings om hulle uitgawes te finansier. Bestaande teorie wys daarop dat ‘n vertikale fiskale wanbalans twee wesenlike implikasies vir provinsiale regerings inhou. Die eerste het betrekking op die responsiwiteit en die tweede maar nie minder belangrik nie, is die verlies aan aanspreeklikheid. Dit is daarom belangrik dat bestaande maatreëls wat dit ten doel het om responsiwiteit en aanspreeklikheid te bevorder ekonomies, efektief en doeltreffend toegepas word. Gebaseer op ‘n literatuurstudie, sowel as ‘n opname en onderhoude uitgevoer in die Noord Kaap Provinsiale Regering, kom hierdie studie tot die gevolgtrekking dat die vertikale fiskale wanbalans ‘n impak het op die responsiwiteit en aanspreeklikheid van die Noord Kaap Provinsiale Regering en dat bestaande maatreëls om responsiwiteit en aanspreeklikheid te bevorder meer doeltreffend, effektief en ekonomies aaangewend kan word. Die tesis bevat daarom ‘n stel aanbevelings wat gebaseer is op die empiriese en literatuurstudie oor die aangeleentheid met die oogmerk om die teenswoordige toestand nie net in die Noord Kaap nie ,maar in Suid Afrika as ‘n geheel te verbeter. Dit is relevant omdat responsiwiteit en aanspreeklikheid twee fundamentele beginsels van demokratiese regering is en beide konsepte deel vorm van die waardes waarop die Republiek van Suid Afrika gevestig is. Die twee konsepte is ook sentraal in besprekings rakende goeie regering.