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2007 Budget and city fiscal space

2007 Budget and city fiscal space. Philip van Ryneveld on behalf of Cities Network 23 rd February 2007. Outline. Determination of fiscal space Finance and functions Options for fiscal space Grants versus own revenues Conclusion. Functions of city governments.

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2007 Budget and city fiscal space

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  1. 2007 Budget and city fiscal space Philip van Ryneveld on behalf of Cities Network 23rd February 2007

  2. Outline • Determination of fiscal space • Finance and functions • Options for fiscal space • Grants versus own revenues • Conclusion

  3. Functions of city governments • Minister uses the term ‘built environment’ • Built environment also includes management of space and flows across a city • Devolution of transport and housing to cities • Public Transport Infrastructure Fund to cities

  4. Two Public Transport Initiatives Gautrain Rea Vaya

  5. Options for sourcing revenue • Own taxes versus grants • Three arguments for preferring own revenues • Accountability • Assurance of revenue • Creates incentives to grow the tax base by acting in ways that grow the economy • Tax base should be related to economic growth • Abolition of RSC levies has been a serious blow to the metros

  6. Johannesburg

  7. Cape Town

  8. What are we doing to our city governments?

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