MOL026# - Renumerating of the economy

[Comrade Josip Naujokas]

This system of budget has worked for a long time in a country which is not on Micras and was adopted by Hamland this year. This will bring a new system of budget making for the Soviet to use and will allow us to make our economic system very strong once more.

The Hammish system can be seen here: hamlandgov.hostingdelivered.com/viewtopic.php?f=14&t=528

The Currency will also be given the official name of the Colish Ruble and sign R. As it will be using the OBS (Ostentian Budget System) we can have the first accurate exchange rate as well.

I will make alterations to the OBS in order to make the system more communist, for example by changing the Basic tax rate to make it a more steady income. Also we can change the spending areas to make them less broad and more in line of what the Soviet union had in order to clarify more on where to spend money. We could even have a base rate of income which changes depending on factors such as overall activity.

There should be a new area for ministries to spend their part of the budget and the budget can be updated every month with alterations being made as regular as necessary. The ministries should allow the Commissars in charge to also run that area of the country.

The ministries (Or Commissariats) will have to present to the Supreme Soviet what they have done with the money and whether they need extra funding.

I would suggest these areas:

Defence
Agriculture
Foreign Affairs
Education, Employment and Training
Internal Security
Administration
Heavy Industry
Research and Technology

Please tell me of any missing areas.

[Vladimir Vova Ochiuriushka]

I very much approve of any movement to establish a real working Colish economy. These proposals specifically look very interesting.

Some basic questions need to be asked. Will there be a fixed amount of currency in circulation? How will personal accounts be maintained? The Supeme Soviet will of course be holding all budgets to account, but I should think we'll still need a Colish Exchequer or Monetary Comission or National Bank to sort out such things.

But the budget ideas, and the taxing, these ideas I very much like.

[Vladimir Vova Ochiuriushka]

By the way, if the President will look at the Defence Budget for 2007 he will see the kind of MRWS Dollars we were already spending back then. (For security reasons, restricted access.*) Perhaps we could use this as a guide for our spending budgets for other departments.

*This gives me an idea...

[Comrade Josip Naujokas]

As for your first questions.

I think a Finance Commissariat may be in order to deal with this. There isn't a set amount of money, but the economy grows and shrinks by a small amount each term, and so that means that it won't go out of control. I'm thinking of making a Micronational standard for the OBS system which would be equal to our currency at the start and change as the economy grows etc. It requires us to self regulate though.

The numbers are in billions. If I link you to the original budget set out you'll see they use units, they were adapted to just mean billions of Obols in Hamland. z9.invisionfree.com/Mock_Parliament/index.php?showtopic=3014

A commissariat is most definatley in order to watch over this though.

[Vladimir Vova Ochiuriushka]

Self regulation is fine and this sounds all good. This is certainly a step in the right direction as far as our economy goes.

I think we could implement this in two acts. One, an act formalising the structure of the economy and putting it in the Register; two, an act kick-starting the economy with a preliminary budget and figure of government spending etc.

[Comrade Josip Naujokas]

That sounds perfect for the job.

[Comrade Josip Naujokas]

Budget 1:

Budget Statistics

Economy Rating: 50%

Percentage of possible income: 60%

Additional Income (Short term projects): 0 units

Total money: 90 Units (90bnR)

Income from Loans: 0
National Debt: 0
Interest on National Debt: 0
Loan Repayments: 0

Reserve in: 35
Reserve out: 0
Reserves Carried Over: 0
Total Reserves: 0

Total Budget Units Available: 65
Budget Spending


Defence 10 [0]
Agriculture 7 [0]
Foreign Affairs 8 [0]
Education, Employment and Training 10 [0]
Internal Security 7 [0]
Administration 8 [0]
Heavy Industry 10 [0]
Research and Technology 5 [0]

Unused: 0

[Comrade Josip Naujokas]

(just as a bump)

The values here represent the country at the point it is at now. Just now the 1R = 1 ESU (economic standard unit.)

So our exchange rate between Hamland and Col is 1 Ruble to the Obol. Woo! Growth depends on the change in government income and money generated by business over the month.

[Vladimir Vova Ochiuriushka]

Very interesting. I am sure this will very much benefit the economy of Col. Might I ask what the 0's in square brackets represent in the department budgeting?

[Comrade Josip Naujokas]

They are the ones of the previous budget, for ease of comparison.

[Vladimir Vova Ochiuriushka]

Ah, what a good idea!

Just to clarify- how often would these budgets be issued?

[Comrade Josip Naujokas]

Should be monthly.

[Comrade Josip Naujokas]

I'll take a vote to pass this.

[Comrade Josip Naujokas]

Aye

[Comrade Josip Naujokas]

Passed:

Aye - 1
Nay - 0