RECOMMENDATION 21: A funding model for the funding of public infrastructure based on a distinction between economic and social infrastructure must be developed.
{"Image DocumentName": "RECOMMENDATION 21: A funding model for the funding of public infrastructure based on a distinction between economic and social infrastructure must be developed.", "Image ImageDescription": "Economic infrastructure, where relevant, must be funded on a \u2018user pays\u2019 basis. Such a funding approach should be complemented by, for example, a portion of the proposed resources tax. Funding of social infrastructure, including roads, should have less reliance on the \u2018user pays\u2019 principle, and more on taxes. The emphasis on taxes and the \u2018user pays\u2019 funding model as the only sources of generating capital for infrastructure must be reviewed, moderated and blended with other diverse policy options. Such funding should be considered and approved by the SOE Council of Ministers guided by National Treasury. To adopt a relatively expansionary gearing policy, the government must signal unambiguously to financial markets its implicit backing of this form of SOE debt because SOEs are strategic. The future pricing of services and retention of earnings must take into account ongoing maintenance requirements and the eventual need to replace obsolete infrastructure to avoid future scrambles for capital to address deterioration.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}