Notice of Introduction: Responsible Spending Bill, 2022 [PMB]

Call for comments opened 18 November 2022 Share this page:

Submissions must be received by no later than 25 December 2022

Finance Standing Committee

In accordance with section 73(2) of the Constitution of the Republic of South Africa, 1996, notice is given that Dr Dion George, MP, intends to introduce the Responsible Spending Bill, (“the Bill”) in Parliament. An explanatory summary of the Bill is hereby published in accordance with Rule 276(1)(c) of the Rules of the National Assembly (9th Edition).

South Africa’s debt burden continues to rise as government borrowing increases. Debt‐ service costs have been the fastest growing item on the budget while consuming an increasing share of GDP and revenue for the past two decades. The interest on national debt occupies an increasingly larger percentage of national expenditure, with 20 cents of every Rand collected in revenue now being needed to pay debt‐service costs. These interest payments increasingly crowd out spending on essential public services.

Urgent action is required to bring South Africa’s debt levels under control and reduce the interest payments this debt entails. Once this goal is achieved, greater national spending can be directed to areas in need of support, such as education, infrastructure, healthcare, and social grants.

The Responsible Spending Bill (“Draft Bill”) will introduce statutory fiscal rules aimed at containing national debt and debt service costs in South Africa. These rules will apply to different debt level bands, thereby adjusting as debt levels reduce. The rules will be binding on government, while allowing for exemptions under specified circumstances, subject to Parliamentary approval. The Draft Bill will also require regular review of the fiscal rules, as well as an annual report on compliance with the fiscal rules. Where fiscal rules were not complied with, the Minister is required to provide reasons therefore, as well as a recovery plan.

Find here: Notice of Introduction the Responsible Spending Bill, 2022 [PMB]

Comments
can be emailed to the Speaker of the National Assembly at speaker@parliament.gov.za and Dr Dion George at legislation@da.org.za by no later than Sunday,18 December 2022.

Enquiries can be directed to Dr Dion George at legislation@da.org.za