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Bill: Financial Stabilization Plan
Details
Submitted by[?]: Democratic Party of Dolgava
Status[?]: passed
Votes: This bill is a resolution. It requires more yes votes than no votes. This bill will not pass any sooner than the deadline.
Voting deadline: October 3135
Description[?]:
| In one year, there will be parliamentary elections and we hope, that we will be able to maintain our current relationship and cooperation with the PGP within the Saeima and the Government. However, this is about something more serious and we have to agree on the basic principles of our cooperation for the future. Our economy is inflated. It relies heavily - with almost 87% - on Government spending and this is not something we can sustain for a long time. We have to act on this and we should prepare our people for harsh decisions ahead. Our Finance Minister Valdas Adamkus has proposed a clear plan, which would present us with an option for a secure future, but with massive and grave short to middle-term consequences. Along with our ministers in Ministry of Infrastructure and Transport, Ministry of Food and Agriculture and Ministry of Trade and Industry we have created a Economic Revitalization and Financial Stabilization Committee. It has proposed the following changes to the budget, however, after elections. Head of Government --- 2,000,000 DLD Foreign Affairs --- 20,000,000,000 DLD Internal Affairs --- 90,000,000,000 DLD Finance --- 100,000,000,000 DLD Defence --- 900,000,000,000 DLD Justice --- 100,000,000,000 DLD Infrastructure and Transport --- 100,000,000,000 DLD Health and Social Services --- 1,200,000,000,000 DLD Education and Culture --- 1,000,000,000,000 DLD Science and Technology --- 900,000,000,000 DLD Food and Agriculture --- 350,000,000,000 DLD Environment and Tourism --- 45,000,000,000 DLD Trade and Industry --- 750,000,000,000 DLD Total --- 5,960,002,000,000 DLD The currently proposed plan, proposes the reduction of Governmental expenses and spending 10 times, thus bringing it down from more than 59 trillion DLD to more bearable 5,96 trillion. At the same time, the situation shouldn't be as bleak as it seems as the proposed reductions leave us with a surplus. We currently earn almost 8,2 trillion DLD per year. Our Personal Income Tax system is as just as only possible and changes there are more than undesirable. However, we can change taxes to make our economy more competitive and thus reduce Corporation taxes. Current rate is 25% and this brings us some 809 billion DLD per year. If this tax would be decreased from 25% to 12,5%, this would bring our income to 404,5 billion DLD. This would result in changes in our revenues from 8,2 to 7,79 trillion DLD. Still a surplus. Thus there is room for more changes in the tax system and this time towards luxury goods. Luxury Goods Tax stands at 20% and brings a total of 637,2 billion DLD . Reducing this tax to 10% would leave us with 318,6 billion DLD, however, again - we would have a positive situation in our budget. With 7,474 trillion DLD. All in all our budget would look like this: Revenue: 7,474 trillion DLD Expenses: 5,96 trillion DLD Surplus: 1,514 trillion DLD (enough room for some changes in various fields. Our GDP would drop from 69 trillion DLD to more favorable numbers: 15,44 trillion DLD. Furthermore, the share of domestic consumption would increase from 11,53% to more than 50% - a strong indicator for the value of our citizens and their spending power. Foreign Investments would bring more than 10% of our economic output. And the rest would be Governmental spending - in more moderate shares and total spending numbers. This is something we own to our people, otherwise we will run our country bankrupt and loose everything we have worked so hard to build up over the past millenniums and centuries. |
Proposals
Debate
These messages have been posted to debate on this bill:
| Date | 01:55:26, June 10, 2011 CET | From | Democratic Party of Dolgava | To | Debating the Financial Stabilization Plan |
| Message | OOC: As far as I know, the number are not affecting any real situation. I just look around the numbers in other countries and found out that this economy is hyper-inflated. |
| Date | 00:45:38, June 12, 2011 CET | From | Progressive Green Party | To | Debating the Financial Stabilization Plan |
| Message | The PGP cedes the point, our economy is inflated. We must take this measures. |
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Voting
| Vote | Seats | ||
| yes | Total Seats: 299 | ||
| no | Total Seats: 0 | ||
| abstain | Total Seats: 0 |
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