Public Finance
It is important for you, as a student of financial management and government systems, to understand that there is no perfect system – democracy might be seen to be the best, but it does have certain pitfalls (faults) and you will recognise these as you work through this book and study further.
It is important to realise that I will be making reference to other countries and their systems of ruling and financial management. Europe itself is constantly on the look-out for new ideas, models of governing and ways of providing services to its people.
It is also important to realise that, while we in South Africa are new to true democracy, many of the countries I shall refer to from time to time have walked a long and arduous (difficult) road – some have arrived, one could say, at a place of balance, others are still getting there. Even America, the shining example to the world of how a country could be run, is having problems, and constantly introduces amendments (changes) to its constitution, is debating the problems surrounding health programmes (whom to supply with what type of health services), and is generally struggling with everyday social and public financial problems we, in South Africa, are yet to discover. I use them, therefore, because they are working models which have been partly successful but are still in the process of changing.
As students of Public Finance we are concerned with the funds that are taken from people by elected representatives and then used for the benefit of all. Tis means that each service provided, whether it be education, fire-protection, hospitals or public transport services, costs the citizens of the country money. It is money directly out of your pocket. We should therefore be aware of the public services provided, and also how the officials we have elected spend the funds which provide them. We should also be concerned when people we know waste money, destroy or damage public property because the damage is always repaired from money directly out of our pockets.
In South Africa over 1100 people were killed on the roads over the 2010 season, while 15 000 people die every year on South African roads. Tese accidents cost South Africa R50 billion in lost income, insurance, medical costs and lost revenues. South African taxpayers will foot most of the bill for this: In simple terms, this is money out of your pockets.
We all have a vested interest in how others provide essential services – are the trains and buses looked aſter – are the hospitals run properly and efficiently? Do the people in charge of government vehicles and equipment treat them with respect? Te very spirit of Masakane is that we build and do things together for the benefit of all. Finding those funds (mostly through tax taken from the taxpayers), keeping those funds and then finally spending the money collected to provide services is a sacred trust – a trust we give others through the power we give to those whom we vote for. Tey are responsible; they are answerable to us. We demand to know at all times what they, as elected officials, are doing with our money. Only when we truly understand that we are the government, will ordinary citizens also become responsible and answerable to each other. Read everything in this book. Make sure you study all those paragraphs and facts except those which appear in blocks marked Case Study or Example. Apply your new knowledge by reading newspapers – especially those with articles about local councillors and politicians; what they say and how they plan to spend your money.
Richard Dreyfuss, Academy Award winner and star of American Graffiti, Jaws, Te Goodbye Girl & Mr Holland’s Opus, reaches an interesting conclusion about a country where Civics teaching is neglected: that it is self-destructive. He talks of America as being a “political miracle” and that the only “ones who don’t know this are our (their) children.”
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