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Closing Budgetary Gaps

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Madagascar
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Closing Budgetary Gaps

Recently I have been dealing with budgetary gaps in both of my states. When faced with these sort of shortfalls, how have you eliminated the deficit?

In Mongolia (Developing Country) my economy sunk into a severe depression (GDP nearly halved in a few quarters), causing a shortfall in revenue so that new indebtedness has reached 5-10% of GDP.
http://www.ars-regendi.com/state/165735/show.html

In Madagascar (Fundamentalist) spending on projects has masked a rising deficit. This isn't an issue yet, but I want to address it sooner, rather than later.
http://www.ars-regendi.com/state/163218/show.html

28.05.2014 20:06
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Helsworth
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Post: #2
RE: Closing Budgetary Gaps

You are playing difficult template states. Your task options are causing you trouble, not the budget deficit. You are having 177 imports and virtually no exports. Your gross investment is just 1 billion. Your high interest rate is causing you to pay more in interest payments in the future. The only way to change your huge trade deficit, in my opinion, is to implement the protectionism reform. And try to keep your Money Supply above your GDP.

As for Madagascar, yet another difficult *abnormal* template state, your debt to GDP ratio is only 31%. Don't worry about it, since it's just the project costing that much - it will be back to normal after the project is finished. Bring down the nominal interest to 1%. And see that welfare and pensions are in sink with the living cost - you have people dying of starvation.


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28.05.2014 21:17
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Madagascar
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Post: #3
RE: Closing Budgetary Gaps

All great suggestions that I will work on implementing. Thanks Helsworth Smile

30.05.2014 02:39
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