Fiscal Discipline
 
Spending with prudence and limits
  
   
 

Fiscal stability is both a necessary and sufficient condition to create wealth. It is need to ensure economic development. Government spending, revenues, and the national debt have crucial impacts on economic growth, performance and stability. Instilling fiscal discipline ensures that limited public finances are channeled towards strategic results. High taxes, bad debts and an erroneous fiscal house reduce investments and damage business activity.

 
   
  
 
Simplify taxation
   
 
Cumbersome taxation causes bottlenecks and corruption. Tedious filing and tax compliance processes are prone to graft and corruption. Clear and simple rules will alleviate instances of abuse and exploitation.
 
   
  
 
OUR PLAN
   
 
  • Simplify taxation processes to make it friendly to responsible citizens and businesses.
  • Set clear rules, steps and accountabilities to mitigate instances of collusion, confusion and corruption.
  • Determine the benefits of shifting from income-based taxation to consumption-based taxation.
 
   
  
 
Lower tax rates, widen tax base
   
 
High taxes yield counterproductive results. With high taxes, there is no incentive to save and therefore no incentive to invest. Our neighboring economies have lower taxation rates, particularly on corporate income. In addition, higher taxes do not translate to lasting improvements in physical and infrastructure facilities. Such conditions drive away investments in the long run.
 
   
 
OUR PLAN
 
   
 
  • Bring down high taxes on compensation income and corporate income.
  • Widen the tax base to reduce effective tax rate per taxable person in the long run.
 
   
 
Generate more revenues, not new taxes
 
   
 
Imposing new taxes will not solve recurring problems in revenue collection. Improvements would have to be done within revenue collecting agencies. Reforms must be geared towards an improvement of tax administration.
 
   
 
OUR PLAN
 
   
 
  • Promote a performance-based revenue collection scheme.
  • Harness technology and maximize its potential to boost revenues by improving transparency, predictability and accountability in the collection scheme.
  • Review the provision of fiscal incentives and subsidies to private firms and investors.
 
   
 
Manage the debt
 
   
 
Our huge debts impair our progress. Around 86% of total revenues go to debt-servicing. Our debt crisis is a huge impediment in enabling wealth creation and economic growth.
 
   
 
OUR PLAN
 
   
 
  • Implement a viable strategy to reverse our mounting debt crisis.
  • Create effective means of managing our national and foreign debts without sacrificing priority expenditure programs.
 
   
 
Prioritize, spend within limits
 
   
 
Government does not always have to foot the bill. When spread to thinly, government cannot produce significant results in its expenditure programs. Priority spending must be employed. Beyond prioritization, government must set limits on its spending.
 
   
 
OUR PLAN
 
   
 
  • Create a long-term but viable fiscal plan. Put vision in spending.
  • Increase allocation for critical public investments such as health, education, skills development and infrastructure.
  • Enhance government’s performance-based budgeting initiatives.
  • Strengthen results-based monitoring of major expenditure programs.
  • Promote medium and long-term expenditure programs to address present needs and anticipate future demands.
 
   
   

 

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