[MoF] Budget Tutorial for beginners

Day 4,340, 04:11 Published in Netherlands Netherlands by Ministerie van Economische Zak

Greetings, citizens of Netherlands,

recently, we have seen some players being confused, as to what individual budget numbers in our Finance Sheet mean, and how to use them for calculating the budget without accidentaly telling lies to entire nation. That's why we have sit down, and after some advice improved the budget tab once again, so now you can see an actual budget, both currency and Gold included, without needing to do any math by yourself.

So, let's look at the last month, September, and go through the meaning of the important numbers.

Before you read further, please remember one important thing - currency and Gold are interchangeable, buying or selling Gold is not an expenditure, merely a conversion.

The first part is dedicated to various kinds of our currency income, which we detail each month in the separate article. The Total Currency Budget number shows, how much Currency the previous government earned, and how much currency does the current Government have to spent.

The second part is dedicated to those currency expenses, which are then summarized in the Total Spent. After you then subtract the Total Currency Budget and Total Spent, you get Currency Surplus. Nothing out of the ordinary, however the untrained eye without any financial knowledge can say:

"Hey, the government could spend only 653k, and it spent 1,5 million! That is wrong!"

And that's where we come to third part of the Budget Sheet - Gold Budget, which also exists for numerous months now, and which contains both income and expenditure in terms of Gold. As you can see, most of the "expenditure" from previous section has been marked as "Monetary Market" (or "Other"). This "expenditure" was actually not an expenditure, but a conversion of currency in the Gold. The Gold obtained from "Other" currency investment (which is sent from our Dutch MM orgs) is shown in "Donations" row, the Gold obtained from "Monetary Market" investment is shown in the "Pther Gold income" row. Therefore, you can easily see, the money have not disappeared, they merely transformed from currency into Gold (and can, of course, be transformed the opposite way as well, if it is advantageous to make profit doing that)!

In the fourth section, we see two new numbers. Gold Total Surplus and Gold Budget. Most of the time, those numbers would be equal. However whenever the extra expenditure is designed by Congress (in this case Transfer to build third Commune), this expenditure is NOT calculated as part of the Gold Budget. Other than that, the Gold Budget number simply adds and deducts the numbers from the third section.

And finally, the fifth section. Gold has conversion rate with currency, which changes quite often. The EZ buys Gold at 500 cc per Gold exchange rate 99% of the time. Therefore as long as the Gold conversion rate stays above 500 cc per Gold, we can easily sell the Gold for extra profit. In this case, the conversion rate at the end of September has been 542 cc per Gold (meaning we could sell the Gold we have obtained for profit... if we were not needing it for the Black Friday in the first place of course 😉 ). Therefore the value of our Gold Budget is 1956*542 = 1,060,152 currency.

If you add this number together with Currency Surplus shown earlier (- 855,902 currency), you then get real, and final Budget Surplus the last number on the picture), in this case 1,060,152 - 855,902 = 204,250 currency.

Therefore, during the month of September, the government had profit of 204,250 currency.

We hope this tutorial will help you to understand delicate monetary matters. For any questions, please do not hesitate to contact the Ministry.

Minister of Finance

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