[SEMI-PRIVATE] Budget Committee

[Josephus I]

I've told a CUE/UMP rep that they can send two each here if they wish. We can get a budget approved, hopefully, but it would be so much easier with VAT.

Josephus

 

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The recent High Court Ruling declared the proposed Term IX budget null and void, so we need to submit a budget for this term, and shortly aftet the Senate elections, for next term. I would go with what be have, plus 9 billion ducats for MESA (improved health care and longer maternity leave) and 9 billion ducats for MDIS (reconstituting the Air Force and replacing dangerously worn or obsolete equipment) both appropriations to be sequested (meaning not spent) until the VAT is passed.

The base line for the next budget would have those items doubled, assuming the VAT was in effect, because we would be collecting VAT for the full term, instead of only half.

Levarge has already threatened, before his chat with the President, to introduce his own budget unless we make haste. I am not an MGA, so I can't introduce this. So if Per Gonzov or Per Rashaad would do the honors, it would appreciated, assuming Per President is in agreement.

 

[Josephus I]

For want of anything else, I am in agreement. Perhaps Per Gonzov, as MERL and an MGA should introduce it.

But maybe we should introduce VAT just before, to make sure it passes first. Also, do we know how much real income VAT will bring us?

Josephus

 

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Two versions of VAT have been proposed already this term in the GA and are being debated, so we don't have to wait for it to be introduced. The budget should mark the additional expenditures for MESA and MIDA with an asterisk, with a note that they will not be spent unless the VAT passes, and that the combined spending will not exceed VAT revenues. The figures I gave are consistent with Eutopia Central Bank estimates for revenues from VAT, which said that a 10% VAT would raise about 45 billion ducats per term.

 

[Josephus I]

OK. Discuss: I've put pluses and minuses in areas that change...everything esle stands the same:

EXPENDITURE

Presidential portfolio (Finance)
Fiscal and General Administration 3
Pension fund contributions (federal employees) 12
Debt service 42

MTIA portfolio
Foreign Affairs and International Aid 6
Trade and Customs 3
Immigration and Citizenship 3

MDIS portfolio
Military 48 (+15)
Coast Guard, Intelligence, Security and Counter-terrorism 9
ENDTech 11 (+5)
[net gain +20)

MERL portfolio
Industry, Commerce and Labour 21
Non-renewable Resources and Fisheries (incl. Recom subsidies at about 9b) 12
Regional Development 3

MIDA portfolio
Federal police 20 (+2)
Transport, Navigation and Shipping 13 (+1)
Broadcast and Electronic Media, Communication 3 (-3)
Postal Service 3
Net gain =0

MESA portfolio
Welfare (incl. unemployment benefits and social aid at about 45b) 48
Health (incl. Medicure subsidies at about 33b) 56 (+20)
Environment and National Parks 6
Sports 3
Omnicare subsidies 27

Net gain +20

AG portfolio
Administration of justice 9

TOTAL EXPENDITURE 361
Code:
REVENUE

VAT 45
Income tax 84*
Personal property and estate taxes 18
Corporate profit tax 36
Indirect business tax and non-tax accruals 75
Natural resources and mining (Recom profits) 63
Interest 21

TOTAL REVENUE 342

Balance negative -23:

 

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(OOC: We were warned by the mods that if we cut Broadcast and Electronic Media, Communication in half, from 6 to 3, that something vital, like the internet, might stop working. Therefore,) I would leave federal police unchanged, instead of plus 2, and have Broadcast and Electronic Media, Communication at 5 for a change of -1, which can reasonably be accomplished by some belt tightening, or regulatory fee impositions/increases.

We should also mark the increases in the Military and ENDTech with an asterisk, with the explanation that these are contingent on VAT revenues.

This looks like a budget for a full term with the VAT in place, which would correspond with the Senate term 10-11 period or term 11. Please make sure whoever introduces it makes that clear.

 

[Josephus I]

Loic, I'll take your advice on the communications cuts and rework that.

I want this budget to take place immediately as Term 10. Obviously we're part way through the term, so we'll assume that the changes will take place incrementally, but I don't really want to work out the math.

Josephus

 

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Please see my most recent speech in the townhall. Please consider increasing funding for FLEA in the proposed budget by 0.3 per term. This request is from the head of FLEA, but appears reasonable.

 

[Josephus I]

Here's the question....do we try to re-introduce VATA or not?

Josephus

 

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It would need 5 votes. We have three from MGAs Saint Daere, Dank, and Rashaad. If you can get someone like Liep to show up for a vote, then you could name him to the third ESA seat, if not you need two others to get on-board, not just one. That should be worked out before resubmitting it. Find out what changes they need to vote yes and if they don't make it a bad bill, then agree, and have that version proposed. But to start, either you, or one of the MGAs needs to make some calls.

 

[Josephus I]

Let's attempt VATA once more; I'll get Liep to pinch hit vote. Failing that, it will be time to get the Budget out.

Josephus