Friday, December 15, 2017

Friday Dispatch #4 - Make it rain

Last week, we talked about how to get money, but money is worthless unless you can spend it.
This week, let's talk about to spend your buckets of ducats.

Annual Budget
Every year, the government will have to submit a budget proposal to the parliament.

All ministries would submit their projected expenditure with a breakdown of the objectives for each of them.
There will be mundane items like operation costs, expansion of department, renovations, upgrading of equipment.
But there could also be special items like "Apollo Program", "National Healthcare Service", "International Space Station" or "Trans-Siberia Railway" etc.

Feel free to strike down any of the objectives that are unnecessary or increase the budget above what was requested.
Increased budgets with diminishing returns (i.e. 100% increase in budget will get 50% increase in effectiveness), reduced budgets work similarly. 

After finalizing the budget, it gets sent over to the parliament for approval.
In dictatorships, it's simple, the budget gets rubber stamped, all is good and everything continues as it should.

For democracies, it's where the fun begins.
Depending on how much control the parties have, MPs either support/oppose according to their own opinions or along party lines.
You will receive a report stating which portions of the budget the parliament is unhappy about.

Conservatives would be concerned in any reduction of military budgets or excessive welfare or deficit spending.
Liberals would oppose strongly if there are any reduction in welfare or investments in new technology.

Bribe / intrigue / coerce your way thru the parliament and try to get your budget passed untouched.
Or get enough support by amending portions of the budget.



Discretionary Spending
In addition to budgets from ministries,  the annual budget also contains a portion called the discretionary spending.

Money allocated to this can be freely spent on anything without the whining of the pesky old men in the parliament.
It could be used to fund military endeavors, disaster relief, diplomatic expenses, bribing etc.

If the fund isn't sufficient for this year's spending, the government could increase money printing at the national bank to supplement it.
Just be prepared for the whining at the parliament for overspending.
Some countries might have a debt ceiling implemented, just remember that it the ceiling is hit (regardless of whether the government overspends), 
help will be needed from the parliament to raise the ceiling before the government is forced to stop operation.