[Ad4CP] Taking care of our monies
Day 2,477, 15:10
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Published in United Kingdom 
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by
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by Addaway
Over the last 9 months or so, the eUK has had serious trouble with our finances, having had the entire treasury emptied twice. As well as money going missing, the government’s management of our cash has been largely chaotic, with vast amounts hoarded in the orgs for long periods of time for no real reason.
The idea that giving all of our money to the CP all the time is not the best idea
As I touched on in my previous article, I want to change that. An Overhaul of the way that the eUK’s finances are handled, giving greater input to congress. At the start of the term I will put all government money with the exception of 50,000cc in emergency funds into the Country Accounts. I’ll then submit budgets to Congress for them to approve. At the end of my term all remaining money will again go back into the Country Accounts, ready to be re-issued to the next CP. All money that isn’t being used for a specific purpose by the CP’s government will remain in the country accounts where it can’t be stolen.
*Edit: It looks like Congress is passing a raise in work tax at the moment. Should this happen it could result in a change in budgets as we would have significantly more money to play with, but we need to look at the data before changing*
With the current taxes that the eUK has, eUK daily income is averaging around the 3000-4000cc mark, with it inflated slightly by us holding foreign regions at the moment. Taking a 30 day average of 3500cc a day gives us 105,000cc over the month. Returning a surplus at the end of the month is almost impossible on that budget, as simply maintaining an MPP stack of 10 will cost nearly all our monthly tax take. Should Congress see fit to raise work tax to 2% (now that the WAM crisis has subsided), then we will have significantly more to play with.
So in terms of money that I’d like to take out of our reserves in the Country Accounts. These are initial budgets and more money could be taken out of the CA should the situation demand it. This would largely be down to the relevant minister asking congress for money (with the donation proposed to go straight to an org controlled by the ministry):
Mo
😨50,000cc- We are in the middle of an important war and I would like to make sure that our MoD is fully funded. How this money is spent would be down to the MoD’s, but I would envisage this would be largely COs
MoHA 5,000cc- How this money would be spent will be properly detailed in my next article.
MoF 50,000cc + 200,000cc: The 50,000cc will be money to be given as part of Training Ground Loans, to be detailed in a separate section below. The 200,000cc is the amount I’d like to give to the MoF to fish on the monetary market, to generate extra profits for the treasury. With the low income we have this month this will be useful in having extra money to use.
TG Loans and Grants ~ Investing in the eUK
Definitely not an ‘investment’ stock photo to break the text up…
Training Ground loans have been done for a long time in the eUK, but this month I want to up the scale of them, with people applying ASAP for them and as much money as possible being distributed before the offers arrive. These advance loans would only be done with eUKers who are active fighters and have stuck around for quite a while with us, so we’re not getting stung by people sucking up lots of gold and then misusing it or going inactive.
Money permitting, I would also like to provide some TG grants to those members of our community who have stuck around, actively fought and just haven’t got to full TG’s yet. This would be focused on a small number of active eUK fighters in D1 and D2, where getting them to 90 a day will be really beneficial for the eUK in the future. The reason these are grants and not loans is that making them pay back the money will make it impossible for them to afford the TC contracts, which makes having full TGs pointless.
Work Tax Rebate for the NHS
I would like to give the money that the NHS and any other charitable organisations pay in work tax back to the people. There’s no sense in the government profiting from WAM being done for helping other people gain TGs, so I would invite Alan or whoever to organise data of the amount spend on WAM to be sent to the MoF daily, and the amount will be refunded. This is a token gesture and will not hurt the treasury, but when it comes to the NHS, every little helps.
I think this just about covers everything. My next article will cover the Home Affairs aspect to my platform (you’ll be pleased to know its not as long as this one) and then I’ll cover Defence and Foreign Affairs.
Adastros
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Comments
This is one of the best articles ever produced by a single man and his computer.
I click on the pictures and it does nothing. Where's the musical interludes you get with a certain hairy sod's articles?
*coughs*
Nice article.
eUK is rich again.
I feel your budget spending relies heavily on if Work Tax goes back up to 2% or higher. Which is a dangerous assumption as Taxes is the domain of Congress, not the Country President.
Nope, our tax income would only be paying for MPPs, everything else is going to have to come out of our reserves unless congress wants to raise taxes. Either that or we halt all government spending and just hoard the money.
That's pretty much the point I was trying to make. So I suppose my question is if Congress don't raise taxes are you going to keep the same spending plan as detailed in your article?
If so, that does run in contrast with your earlier statement that you wish to leave the Treasury in surplus.
I would like to run a surplus, but on current taxation that will be impossible, as just maintaining our MPP stack sucks all the money up. I'd still propose the same spending plans to congress, as that's how I would like the government to be funded this month. It'd be up to congress whether to accept them or reject, or changes taxes to make the spending sustainable.
50k for the MoD is nothing. Are you suggesting everytime we need CO money the MoD has to wait 24 hours till he can get hold of it?
Unfortunately there has been very little data available for what the govt has been spending on COs this month, so 50k was my best guess for a starting point. 50,000 will last the MoD a substantial period of time at least, so that if there is a compelling case for extra money, then the MoD can talk to congress and get a donation law through before the 50k runs out. With good planning, we won't run out of CO money unless Congress denies the funding.
50k is nothing in a battle. Also I wouldn't take what we spent this month as a base. This month as been an extraordinary one. Hopefully eUK won't need to spend quite so much in the near future. I would still advise against setting a budget for the MoD though.
Another one extra article Adastros.Don"t quite understand all of those numbers you put it for MoD and CO
and for National Bank and MoF,but I am sure it will be enough money to spend wisely on various expences and also to save it .Voted,subed.
Thank you for removing jamesw's article, it had been sitting in the top economic articles section for almost 2 weeks.
Voted, a lot of strong and good ideas in my opinion, Adastros o/
Why is that picture got euros in it are you a European spy
The UK has enough money to basically just about live month by month as it is
When work tax is at 1% the UK us making a loss every month of around 40k-50k. I would love to know what makes you think when the work tax goes back to 2% your gonna have all this spare cash to start throwing at non gov orgs and or people.
Before you written this indepth account on how you would look to spend cash and laid out plans on who gets what, did you actually speak to the MOF to find out what we do have, how what we have is currently used ?? Just so you have a idear on what your budget really is? The only reason i ask is because what you plan to give out to ministerys is more than what we have in the treasury let alone MPP expenses which is taken from there.
At 1% work tax the eUK generates about 3500cc a day, or just over 100k a month. At 2% work tax (when it was there before) the eUK made around 7k a day, or 210k a month (figures taken from Argo, the last time we had 2% work tax http://forums.erepublik.co.uk/index.php?topic=88741.0 )
. So, if there is a return to 2% work tax (as now seems likely) we will have plenty of money to use and still return a surplus.
If we assume that WT stays at 1%, I still think we can do the level of spending I proposed, albeit with a deficit over the month. The 200k in MM fishing would all be returned at the end of the month, and the 50k would be mostly in loans so would also come back to the treasury at the end of the month. This leaves only the 55k of MoD and MoHA funding which will really come out of our reserves and be spent, plus some of the TG funding in grants (perhaps 15k)
More profit in buying up gold on the market and selling it via Issue Money proposal than you would from MM fishin.
If you spoken to the MOF you also be aware that if profits are made in the month that also triggers a repayment plan of Gov debts for loans from players.
BUDGETS ARE GREAT