| Government must practise sound fiscal 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.
5.1 - 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.
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