S.A.

GOVERNMENT
What is a Government?
O A group of people who have power to make
and enforce laws for a country.
O A group of people who manages and control a
country.
Three main Functions of the
government
O Legislative:
writing and passing of laws
Making and enforcing laws.
O Executive:
Making decisions
Implementing laws
O Judicial:
Decision made by judges in court of law
 The South African
Government
O South African government is made up of individuals elected by
people of the country >Democratic Government<
O South Africa had a constitutional democracy as our system of
government since 1994.
O South African government meets in Parliament where
members of parliament debate all laws.
Five Goals of the government
O Growing Economy
O Redistribution of wealth and resources
O Maintaining stability in price changes
O Reducing unemployment
O Maintain exchange rate
Three Levels of Government
O National Government
O Provincial Government
O Local Government
 National Government
O The highest level in the government.
O This level is responsible for overall running of
the country.
O It deals with national issues.
O It consist of President, Vice President and
National Ministers.
Provincial Government
O The middle level in the government.
O This level is responsible for issues in different
provinces.
O There are nine provincial government.
O It consist of Premiers and Ministers(MEC).
 Local Government
O The lower level in the government.
O This level is responsible for issues in different
municipal areas.
O There are three different kinds of
municipalities: Metropolitan, Local and
District.
O It consist of Mayors, Counselors
and Ward counselors.
 Households
O People in the economy who own and control
the factors of production.
O They are also known as consumers
O FACTORS OF PRODUCTION
❖Land
❖Labour
❖Capital
❖Entrepreneurship
 Role of Households
O Spend money on goods and services: HOW^?
⮚ Buying products they use daily.
⮚ Paying for products provided by the government.
⮚ Payment for licenses and permits.
⮚ Partial payment for basic services provided by the
government.
⮚ Payment of rates and taxes for water and lights.
continues……………………………
O Paying Tax to the government.
What is tax? :
A compulsory payment to the government.
Three Example of Tax paid by Households:
O Consumption Tax >
Is tax paid on goods and services bought by households.
E.g. VAT(Value Added Tax)
> VAT is paid on non essential goods.
>VAT is paid by ALL citizens

• Income Tax > paid by a household earning salary or wage.

• Excise Tax > paid by households on alcohol and cigarettes

Government interaction with
Households
O The government provide resources and
services to the household:
Education,Health,Police,Housing,Infrastructure, etc.
O The government charges household tax:
Consumption tax, Income Tax, Excise Tax, etc.
O The government buys factors of production
from households:
Rent land from households, employ household(civil servants),
etc.
 Businesses
O Manufactures and producers of goods and
services.
O They are also known as firms
O Types of businesses:
• Trading business: Buy and sell goods
• Service business: provide services.
• Manufacturing business: produce goods.
 Roles of Businesses
O Provide goods and services.
O Provide labour to government
O Pay salaries and wages to households.
O Pay tax to the government:
• Company tax> pay tax from company’s profits
• Custom Duties> Export goods.
• Import duties> Import goods
 LABOUR LAWS
O Basic Condition of Employment Act:
(BCEA)
Employment standard.
O Labour Relation Act: (LRA)
Protect workers against unfair practice.
O Employment Equity Act: (EEA)
Protect workers against unfair discrimination.