In the run up to this Friday’s budget, this writer conducted over the last several days a snap ‘survey’ on line (whats app, conversations) and directly in interviews with several adults (from among varied demographics) querying their views on their expectations in this year’s annual budget and inviting comments to share with readers on what the government should include as priority. The general response from everyone is that they expect the budget to be populist and election related, meaning government doling out a lot of goodies to entice voters to support the ruling party. It will be a budget ‘of freeness’. But many, including supporters of the government, commented that the budget should not just be an election gimmick. It should be about the people, the country, and human development not for party or election gains.
Each demographic such as the lower class, middle class, business class, young, old, educated (tertiary), less educated (secondary schooling or less), etc., has its own priority offering varying opinions and each seeking its own interests with some common universal interests like aiding the unemployed and the pooper class.
Before specific questions were posed, many respondents volunteered comments on what they wanted or would like to see: that the budget should increase the exemption limit on income tax, increase welfare payments to pensioners and others, fix the problem at NIS for those who have been denied eligibility in spite of making many contributions to the fund, decrease the percentage on corporate tax, reduce VAT and or remove some “Vatable” items that are or have become necessities in a growing economy, and reduce excise tax on fuel. There is a view among some that government should eliminate compound taxes — duties plus VAT – the compound taxes hurt the poor and small businesses the most. The taxes are passes on to consumers. The rich can afford the taxes but not the lower income or the unemployed and the poor. Respondents expect most of the above.
Some respondents say the tax should be abolished altogether – since it is linked to massive corruption. Many people, businesses (not all) in particular, are known to pay bribes to avoid taxes, duties in particular. Tax, it is argued, reduced take home income, but it has not dawned on many that without tax, there can’t be many government services. And there is near unanimous support for favorable schemes for the underprivileged (the poorer class and lower income class, the disabled, mentally challenged, pensioners, NIS recipients, and others of low fixed income, etc.). It is felt that old age pension and NIS payments can’t meet the rising cost of living. It is noted that NIS has remained largely stagnant; NIS recipients don’t get a bonus but pensioners and public service workers, police, armed personnel receive a bonus. There is also a call for sugar workers to get a bonus like other state employees.
There is a call for reduced duties on imported vehicles — remove duties on commonly used personal vehicles of higher cc and on equipment and vehicles for agriculture and industries. The poor complain they can’t eat the road. The farmers want more subsidies. Almost everyone complained about the high cost of living and building materials.
There is unanimity in views that salary can’t keep pace with rising cost of living; the poor (earning $80K or less monthly) than could barely eke out a living; even a $100K could barely cut it. Government has to find a way to subsidize cost of living for the poor (increased utility payments). It is suggested that government should create some kind of health insurance policy so that people can choose their doctors or medical facility.
Also, almost everyone is of the view that the government should save (from oil revenues) in the heritage fund for the future. But they also want more grants especially for the middle and lower classes similar to the $100K currently being distributed across the nation. Many note that government must do better in its distribution of grants and other handouts that have been an administrative nightmare.
There is a contradiction – although the population want to save for future use in the oil fund — the survey observed a preference for short term consumer spending over long term objectives. People want to improve their lives now, not so much concerned about a longer-term vision or plan.
The population support infrastructure works but complain about its quality, describing most road work as shoddy and outright poor claiming many roadways have been falling apart.
There is widespread dissatisfaction on the tax threshold. Everyone is of the view that it should increase to assist the lower and middle income workers to have more disposable pay. And the middle sized and large businesses feel that the percentage in tax they pay on profits should be reduced. Businesses feel that less tax will encourage business to inject more money into the economy; some business persons also argue for other incentives to encourage investment.
Many felt there should be an increase in NIS and pension payments since wages and salaries for all categories of the public service have increased. It is noted that there was no increase in NIS across the board for a long while. Many NIS former workers who made contributions have not received their eligible benefits. It is also argued that since old age pensioners are receiving a subsidy on water and electricity, this benefit should be extended to NIS pensioners. The population also want lower PAYE deductions (increase the threshold) and more cash grants.
Overall, the population would like to see establishment of a mechanism, an independent agency, to crack down on corruption, especially acts committed by officials, with prosecutorial powers.
There is call for more developmental plans and community programs better community and health centers with enough staff, nurses, doctors, human development programs like sports and culture, programs to eliminate poverty especially in rural areas and hinterland.
There is a suggestion for more jobs with regular, sustainable income. People want job security. Instead of the 10 days unemployment relief job, make it a permanent job. It is noted that the unemployed can’t live off $40K a month. A family of four would need at least $100,000 to manage.
There is a recommendation that government do more to address crime and improve security – hire more police officers for community policing and in business districts and to increase pay of police.