1. Role of the FFC Prof Setai: Chair/CEO - FFC
Financial and Fiscal Commission
21/07/2010

2. Outline of Presentation
About the FFC
What does the FFC do?
How FFC influences policy
Enforcement of FFC recommendations
Summary of FFC work cycle
Regarding the Tourism
Role of the FFC

3. About the FFC
FFC established in terms of S220 of the Constitution and the Financial and Fiscal Commission Act (1997) as amended
Independent, objective, unbiased & impartial constitutional advisory body
Commission makes recommendations on the equitable division of nationally raised revenue among and between the three spheres of government (and on any other financial and fiscal matters)
Advice and recommendations to parliament, provincial legislators, organised local government and other organs of state
Role of the FFC

4. What Does FFC Do?
Traditionally the Commission’s work has been around the following two outputs
The Annual Submission on the DoR
Submitted by April/May annually
Contains policy recommendations/proposals for following fiscal year & MTEF.
The Submission on the Division of Revenue Bill
Submitted to Parliament in February yearly.
Outlines and responds to Government’s response to FFC’s Annual
FFC Responds to the DoR Bill
After budget : Provides analysis of national, provincial, & local government budgets.
In-year submissions/comments/periodic reports on request by stakeholders and/or of FFC’s own initiative
Guided by legislation relevant to the mandate of the FFC
Role of the FFC

5. How FFC Influences Policy
Identify weakness within the IGR system
Propose evidence based policy proposals
Interact and participate with/in forums and institutions responsible for IGR policy
FFC is a member of the Budget Council and Budget Forum through the Chair and Deputy Chair- As OBSERVERS.
Commission can attend on invitation various MinMecs
Information dissemination – invitations from nine provincial legislatures and organised local government
Interact with various committees within parliament
Role of the FFC

6. Enforcement of Recommendations
Recommendations are not binding
No need for enforcement but rather deliberations through the budget and parliamentary process of cooperative governance.
But success rate in terms of acceptance of recommendations is over 80%. However, on implementability after acceptance is unclear!
Government is obliged through an Act of Parliament to explain how it has taken the FFC recommendations in arriving at the division of revenue for any particular year.
Role of the FFC

7. Summary of FFC Cycle

8. Regarding Tourism No specific recommendations on the tourism sector.
Recommendations on the economy and other sectors (education, Cogta, NT, Agric, LG, PG) may indirectly have a bearing on the tourism.
But FFC welcomes this meeting:
To identify pertinent and strategic issues in the tourism sector
To identify research issues that FFC can undertake with the view to making appropriate advice and recommendations in future.
To work with other stakeholders for growth and prosperity of the tourism sector
We welcome opportunities being invited to Tourism workshops, etc– best way to pick up issues.

9. Thankyou