SAICA comment on South Africa’s Fiscal Policy – 2023 Medium Term Expenditure Framework

Enforcement of the country’s laws and ensuring appropriate accountability are key requirements for the budget process to be successful. Without implementation the preceding steps lose credibility and buy-in. Various recommendations are made by SAICA in this submission on how to improve and stabilise fiscal policy in the country and how productive employment can be created. Of particular concern is the lack of consideration of prior year performance and accountability in the subsequent budgeting process. Further recommendations are made on challenges of execution of fiscal policy of the budget process including steps to return credibility to the budgeting process. The social compact should be reflected in the budgeting process including the agreements as reached at NEDLAC and with labour in particular. The return on investment of employment costs is a key aspect of the budget and requires numerous aspects to be addressed in the budgeting process. Clear and strategically aligned prioritisation of limited resources for competing needs should underpin the budget and its execution.