Financial Management

ACDP policy on financial management

Government must practise sound financial management.

It should not overspend, contribute to inflation, engage in chronic deficit budgeting, or engage in unjust expropriation or impairment of property rights.

If there is a large difference between tax paid and services or benefits rendered, dissatisfaction is the result and government loses its credibility.

Financial decentralisation

The ACDP believes in the principle that a fair distribution of tax between the three tiers of government is a better system for economic and developmental progress, for a decentralised infrastructure.

Each community or region will commit itself to building up its infrastructure through a finance system supported by the regions and as a result service delivery will be much quicker and more cost effective.

The ACDP believes that bureaucracy; tax and government interference should be minimal.

What will be required is that finance and fiscal policy be based on simplicity, stability, equity and efficiency, through a process of community or regional consultation.