Questions concerning Eskom, audits, VAT, municipal finance, and economic policy.

Here are the answers to the questions:

1.2 True or False:

1.2.6 Eskom hands over blackout operations to city powers in Johannesburg.

• False. Eskom manages the national grid and directs load shedding stages, which City Power then implements within its jurisdiction. Eskom does not hand over the operations themselves.

1.2.7 The main tool of control is the audit.

• True. Audits are a primary mechanism for financial control, accountability, and ensuring compliance.

1.2.8 A VAT increase could be forecasted in our poor economic climate.

• True. Governments often consider increasing VAT to boost revenue during periods of economic difficulty.

1.2.9 MTBPS deficit could be addressed by increasing taxes and VAT.

• True. Increasing taxes (including VAT) is a direct way to increase government revenue and reduce a budget deficit.

1.2.10 Gift of the Givers is an example of a non-profit organisation.

• True. Gift of the Givers is a well-known non-profit humanitarian aid organization.

1.3 Complete the following sentence or sentences:

1.3.1 SAPOA shows that property rates are used to subsidise municipalities.
1.3.2 Only 38 out of 257 municipalities received clean audits the 2021 to 2022 cycle.
1.3.3 Tough fiscal choices ahead for finance minister Mr Godongwana.
1.3.4 The African Growth and Opportunity Act acronym is AGOA.
1.3.5 The above act is a piece of legislation approved by the U.S. Congress.
1.3.6 Twenty-two cents of every rand in South Africa is spent on servicing debt.
1.3.7 Non-profit organisations do not pay tax as long as they do not make any profit.
1.3.8 The debt to GDP ratio in South Africa is 72.5%.
1.3.9 The wealth tax that one pays on land and buildings that you own is called property tax.
1.3.10 An increase in VAT is bad for the poor because it is a regressive tax.