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Parliament Adopts 2021 Fiscal Framework and Revenue Proposals

March 18, 2021

Parliament

Parliament adopted the 2021 Fiscal Framework and Revenue Proposals last week.

In a statement, parliament announced that the national assembly and the national council of provinces during plenary sessions agreed to the finance committees reports on the 2021 Fiscal Framework and Revenue Proposals.

The framework was tabled by finance minister, Tito Mboweni, on 24 February 2021 together with the 2021/2022 Budget, the Division of Revenue Bill and the Appropriations Bill.

According to parliament, the Fiscal Framework and Revenue Proposals is a “framework for a specific financial year that gives effect to the national executive’s macro-economic policy and it includes amongst others estimates of all revenue, budgetary and extra budgetary specified separately, expected to be raised during that financial year and estimates of borrowing for that financial year”.

One of the recommendations made by the finance committees was that national treasury and the South African Revenue Service should “intensify revenue enhancements initiatives to collect maximum revenue due to government in order to enable it to deliver on its constitutional obligations”.

Last week, treasury briefed parliament on the 2021 Division of Revenue Bill.

In response to recommendations from the Financial and Fiscal Commission, treasury indicated that government plans to implement structural reforms including modernising network industries, reducing barriers to entry and increasing regional integration and trade; Infrastructure Investment Office set up in the presidency; consultation on the Draft Public Procurement Bill is at an advanced stage – objectives of the bill include to advance economic opportunities for previously disadvantaged people and women, the youth and people with disabilities, small businesses and promote local production and changes to provincial and local conditional grants to be considered to boost local procurement once a preference points framework is in place.