[MoF] Budget Analysis and Tournament Gold Surplus

Day 2,393, 11:29 • Published in Netherlands Netherlands • by Ministerie van Economische Zak


The following is a brief overview of the previous two terms budgeting and a more indepth review of our total gold surplus from the tournaments this past year and how this surplus affects our expenditures and government decisions. As always, you may check the data here: https://docs.google.com/spreadsheet/ccc?key=0AmBBdzMqrIBmdHFrNkFfaGtSVjBrcm50YzlhYU9CU3c#gid=2



Tonie and ArcanicMindje Terms

Tonie’s term was heavily bogged down by the war with Norway and was forced to run a deficit relative to tax income which we derive our budget from. Here is the following stats:

Tax Income: 37,918
Donations: 2,200
Budget: 40,118
- - - - -
Emergency Funds: 77,880
Total Spent: 117,999
Result: -77,880

Tonie’s term ran a deficit of 77,880 of emergency funds to maintain the war. It should be noted that a large majority of the total spent, over 100k, was spent solely on Combat Orders and MPPs. In fact, when compared to the amount Norway spent just on their MPP stack at the time of the war, 10-12 MPPs, and taking into account they setup their own COs in excess over 10k, through personal observation, we spent equal to less than Norway while managing to win the war even factoring in ArcanicMindje’s term. This can be attributed to a healthy MPP and CO mix and good allied support.

ArcanicMindje’s term dealt exclusively with cleaning up the war with Norway and managed to run a surplus. Here are the stats:

Tax Income: 36,309
Budget: 36,309
- - - - -
Total Spent: 26,000
Result: 10,309

As you can see we ran roughly a 10k surplus during ArcanicMindje’s term. Although congress voted to approve a 40k MPP allowance during his term, it was never used and all of our MPPs are currently ended. It should also be noted that there were some financial issues during this term and we do not have detailed data on the exact spending. As MoD I tracked our military expenditures and recorded the basic data on the sheet as is now, but I admit it is not very transparent. I can assure you that all of the expenditures during this term were attributed to Combat Orders fighting against Norway.



Tournament Gold Surplus

This is a plan I have been meaning to work on for some time but have become distracted with other matters, such as real life. Over the past year Netherlands has been involved in three tournaments that have accumulated 8300 gold. This is an enormous surplus and when converted to NLG at the minimum transfer rate it equals 8300 x 200 = 1,660,000. Since last August we have acquired over 1.5 million NLG. Now let me break that down in terms of how much has been spent so far:

We won:
1st time: 1,400G
2nd time: 5,000G
3rd time: 1,900G
Total Earne😛 8300

Communes (Gold Reserved): 3,220 / Dave - 1,190 Heikanu - 2,030 (For 58 Raws each)
Tournament Gold Giveback (Aries): 252
- - - - -
Total Spent/Reserve😛 3,472
Result: 4,828

Now that we have figured out exactly how much gold we have spent from our winnings, let’s subtract our total deficits since August to come up with our total surplus remaining. This means that we must convert the 4,828 gold into NLG at 200 per gold. 4828 x 200 = 965,600. I admit I have trouble interpreting Weekstrom’s records since he doesn’t factor deficits or surpluses in accordance to tax income and donations and was using EF funds from previous terms in his calculations (Illegal since EF funds end after the term is finished, but debatable I’m sure), but I believe I have the right data.

Total Surplus After Gold Expenditure: 965,600

Aug: 9,464
Sept (Airstrike): 101,019
Oct: 7,394
Mar: 77,880
- - - - -
Total Deficits: 195,757
Remaining Tournament Surplus: 769,843

Now that we have taken out all deficits of the previous terms since August, we see that the total surplus winnings we have remaining are 769,843, or about 46% left.



MPP Allowance

With these remaining surplus funds of 769,843, currently still in gold form at 200 NLG per gold, I had wanted to setup a constant MPP allowance of 4-5 MPPs per term. This allowance could be used as an extension to the government budget to be used accordingly. I propose this because we are in a time where we need MPPs with our allies to show moral and actual support in battles. We are also required by our North Sea Pact to sign MPPs with our allies when the time comes. It should also be noted that this allowance would not have to be completely spent every term and all of the funding comes from tournament winnings so we are not actually dipping into our original reserves.

4 MPPs per term: 19 terms
5 MPPs per term: 15 terms

If we spent the entire allowance each term until we ran out of money, the above would be the result. I strongly suggest each citizen and congressman look into this information and formulate your own ideas of what is acceptable use of this surplus tournament winnings and how we should use them. Perhaps some of you believe we should store it all away as permanent reserves, perhaps others believe we should spend it all on MPPs, or perhaps a mixture of both. However people interpret the data, it is important to realize that Netherlands is in a very strong state financially and we do have the funds necessary to support whatever we want to pursue.



Minister of Finance
Aries Prime

State Secretary
The Valeyard




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