Gauteng government looks to increase revenue collection
In a media briefing on Sunday, Gauteng Finance MEC, Lebogang Maile says the provincial government's revenue collection rate currently sits at a disappointing 20 percent.
JOHANNESBURG - The Gauteng government says it's looking at potentially raising bonds as a way to increase revenue.
Governments issue debt security bonds on the market in order to raise spending on their projects.
Since the bonds are backed by government, they are considered in the market sector as low risk and rewarding.
In a media briefing on Sunday, Gauteng Finance MEC Lebogang Maile says the provincial government's revenue collection rate currently sits at a disappointing 20 percent.
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"But we are also looking at other instruments provided by the law to raise money, which we are not going to talk about now prematurely but that could include raising bonds, but as you know it will require National Treasury, but we can't speak about those issues now. Starting a State bank is one of those big long-term sustainable initiatives of raising revenue," said Maile.
He said the provincial government was also looking at raising the price of liquor licenses.
"Big institutions like restaurants and hotels that are upmarket and in suburbs, they pay nothing so we would want to increase that significantly," said Maile.