Main Findings on Free Basic Services from National Treasury Fiscal Incidence Report

Stellenbosch Working Paper Series No. WP14/2009
 
Publication date: 2009
 
Author(s):
[protected email address] (Department of Economics, University of Stellenbosch)
[protected email address] (Department of Economics, University of Stellenbosch)
 
Abstract:

This study analyses the extent to which the poor benefit from Free Basic Services (FBS), which include free basic water, free basic electricity, free basic sanitation and free basic solid waste removal. Unfortunately, none of the data sets analysed could be used to conduct fiscal incidence analysis because none of the surveys asked appropriate questions with regard to consumption/usage or tariffs/costs of FBS, the non-survey data from DWAF and NT were self-reported from municipalities, with several municipalities and district municipalities not providing any information at all, and the main data set provided by National Treasury was found to be riddled with inconsistencies and errors. The easiest and ideal solution to the data problem would be to have municipalities report household consumption data at monthly intervals throughout.

 
JEL Classification:

H4, H5

Keywords:

Publicly provided goods, National government expenditures

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13 September 2021
It was a data-heavy week in SA, with the 2021Q2 real GDP data indicating that the economy had better-than-expected recovery momentum in the first half of the year. While growth remained solid in the second quarter, both the survey and actual data released last week revealed the significant impact that the range of shocks at the start of the third quarter...

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