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How to balance the budget

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miamihurrricane
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Post: #1
How to balance the budget

I Am panicking i've been trying to balance my budget by cutting everything the military,subsidizes, administration,other, environment,family,heath care, even education I've managed to get a primary surplus but because of the huge interest payments i can't balence the budget plus my influence is so low that i can only do 8% changes as if that was't bad enough my unemployment rate keeps rising every quater it's now over 7% i am playin the usa in classic and i am trying to go full blown libertarian please help!


"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild

"From now on, depressions will be scientifically created." — Congressman Charles A.
Lindbergh Sr. , 1913
14.11.2011 04:49
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Titian
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Post: #2
RE: How to balance the budget

remember, that the gouvernment is an important supplier and consumer within any (national) economy.
By cutting your expenditures you force possibly millions of state-employees out of work. It also cuts their derived demand, thus creating a chain reaction in your economy.
There are some positions in which cuts are reasonable (such as defense), but there are also vital ones such as administration. You basically castrate your own gouvernment by cutting administration.
Your state is still young. Try to build a strong foundation for the future in the present, rather than trying to force the future into the present. f you think some expenditures are neccessary and beneficial for economic growth, try to increase income.


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14.11.2011 05:05
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Rising Phoenix
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Post: #3
RE: How to balance the budget

What Titian said.

'Cutting across the board' -- Nice words, terrible actions. As in real-life, things in ARS are best done at a moderate pace.

For good or worse, your economy is at the start a near-replica of what the US is. Axing the budget seems like a good idea at first, but your economy will take a great hit. Ergo any surpluses made will be lost due to less money on the economy flowing around.

Keep decreasing your interest rate and moderate increasing your money supply as well. Currency needs to keep flowing to stimulate the economy.

Do not cut administration, justice, or others. Even if you are a minimalist/minarchist/economic liberal, you need to maintain the infraestructure, at least the very one upon which the government operates upon.

|EDIT|: Also, remember to do privatization tasks and relevant reforms, like Liberalism. This will get you the economy and society you desire. Wink

14.11.2011 07:04
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miamihurrricane
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Post: #4
RE: How to balance the budget

There are some positions in which cuts are reasonable (such as defense), but there are also vital ones such as administration. You basically castrate your own gouvernment by cutting administration.
Your state is still young. Try to build a strong foundation for the future in the present, rather than trying to force the future into the present. If you think some expenditures are neccessary and beneficial for economic growth, try to increase income.
[/quote]

so what exactly to do i cut and how do i increase my influence to enact reforms like flat tax and liberalism?Noplan


"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild

"From now on, depressions will be scientifically created." — Congressman Charles A.
Lindbergh Sr. , 1913
14.11.2011 23:02
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ystradband
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Segovia
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Post: #5
RE: How to balance the budget

You're closer to balancing the budget than many. Your influence will grow as the length of your regency increases, unless you make unpopular choices.

There's scope to cut pensions payments further if you want to - they're still a fair way above the cost of living. You could enact laicism now and you could use the regent actions to propagate a tax reform if you don't want to wait for your influence level to hit 3.


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14.11.2011 23:13
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Uggla6
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Post: #6
RE: How to balance the budget

Raising taxes are a great way to get more money (if not the only manual way) and to do this without popularity penalty raise pensions and welfare. You can lower the interest rate to lower the amount of debt you pay (although it hurts the dollar and economy). To keep the economy going you should increase other, administration, and subsidies. Everything else besides other, administration, subsidies, welfare, and pensions can be and should be lower to try and balance the budget. Ive not actually looked at your state but say this as a general statement to all who are trying to lower there expenses and debt. This is not the only way but the way that has worked the best for me in the past.

Good Luck the fun of the game is in trying new things


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14.11.2011 23:35
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Lyu
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Post: #7
RE: How to balance the budget

I don't think he would want to increase taxes, welfare and subsidies if he plans to go the libertarian route. Wink
It also is not very effective, in my opinion. I usually use the other way round (decreasing acquisition and capital taxes, welfare, pensions and especially subsidies) and it works fine. However, I also heavily increase the other budgets (education, environment, family, administration, others, ...) and excise taxes. This way, the economy gets stimulated enough to provide a higher growth of income than of expenditure and the population still is happy, because a growing economy helps to keep unemployment down and a lot of stats in the Education & Culture, Quality of life etc. sections increase (which is also beneficial for your regent's health).
PE Defence depends very much on the type of state (Classic: Cut as much as possible / World: Slowly increase).

Later, the budget can be easily cut "across the board" again with Liberalism, which sets most PEs to 10-20% of their former value, and even lower for health, defence and administration if you also use their own reforms (Privatized Healthcare / Pacifism / Administration Reform + Laicism)

15.11.2011 13:54
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miamihurrricane
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Post: #8
RE: How to balance the budget

thanks a lot Applaus


"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild

"From now on, depressions will be scientifically created." — Congressman Charles A.
Lindbergh Sr. , 1913
15.11.2011 21:19
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