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Balanced Budget Act
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| RonsardEntrente | Date: Tuesday, 23 Nov 2010, 1:26 PM | Message # 1 |
 Lieutenant
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| Introduction: As stewards of the Imperial purse, the Senate has a moral and fiscal responsibility to keep the revenue and expense streams in balance. Morally speaking, we cannot overextend our financial burdens to the point where we are discounting future generations for our spending sprees. Fiscally speaking, it is not sound financial and monetary policy to spend more than what the Empire takes in from taxes, tariffs, and other income sources. Deficit spending devalues the Imperial currency, creates economic uncertainty for private enterprise, and encourages wasteful spending and corruption at all levels of the Imperial bureaucracy. It was the large debt of the old Republic that created the political instability that allowed the separatist movement to flourish and wreak havoc throughout the galaxy. It is for these reasons that I respectfully submit the following act for the Senate's review: Section 1. Prior to each fiscal year, the Senate shall adopt a statement of receipts and outlays for that year in which total outlays are no greater than total receipts. The Senate may amend such statement provided revised outlays are not greater than revised receipts. Whenever three-fifths of the whole number of senators shall deem it necessary, the Senate in such statement may provide for a specific excess of outlays over receipts by a vote directly to that subject. The Senate and the Emperor shall ensure that actual outlays do not exceed the outlays set forth in such statement.
Section 2. Total receipts for any fiscal year set forth in the statement adopted pursuant to this article shall not increase by a rate greater than the rate of increase in imperial income in the last calendar year ending before such fiscal year, unless a majority of the Senate shall have passed a bill directed solely to approving specific additional receipts and such bill has become law.
Section 3. The Senate may waive the provisions of this article for any fiscal year in which a declaration of war is in effect.
Section 4. The Senate may not require that the subject-planets engage in additional activities without compensation equal to the additional costs.
Section 5. Total receipts shall include all receipts of the Empire except those derived from borrowing and total outlays shall include all outlays of the Empire except those for repayment of debt principal.
Section 7. All other Senate business shall be temporarily suspended until a balanced budget has been enacted for the current fiscal year.
Section 6. This article shall take effect immediately upon its ratification.
Ronsard Entrente Senator of Commenor
Ranking Member, Commerce Committee
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| Tremaine_Fowlkes | Date: Friday, 26 Nov 2010, 9:49 AM | Message # 2 |
 Colonel general
Group: Users
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| As we know, galactic economy is probably the most complicated thing we've come across. It is impossible to predict how the economy will work out at the end of each fiscal year. If I may ask so politely, how will this help?
Tremaine Fowlkes
Senator of Telos IV
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| RonsardEntrente | Date: Friday, 26 Nov 2010, 11:37 AM | Message # 3 |
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Lieutenant
Group: Users
Messages: 58
Status: Offline
| Senator Fowlkes, the guarantee of a balanced budget for all operating expenses in the Empire will send a strong, positive signal to our banking creditors/lenders that the Empire pays off its debt and keeps sound fiscal discipline for the benefit of future generations. This guarantee will help banks set lower interest rates for borrowing on credit and, in turn, create more favorable and stable conditions for capital investments (expansion/creation of businesses, major public works projects, etc). If we do not maintain a balance between revenues and expenses, we will be leaving the Empire vulnerable to more volatile market conditions and higher interest rates than our entrepreneurs, trade guilds, and other businesses deserve.
Ronsard Entrente Senator of Commenor
Ranking Member, Commerce Committee
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| Tremaine_Fowlkes | Date: Friday, 26 Nov 2010, 11:41 AM | Message # 4 |
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Colonel general
Group: Users
Messages: 881
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| I suppose this is a good thing for the economy. Thus, I vote in favor.
Tremaine Fowlkes
Senator of Telos IV
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| Sate_Pestage | Date: Thursday, 02 Dec 2010, 9:49 AM | Message # 5 |
 Lieutenant general
Group: Moderators
Messages: 639
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| The chair will compose a formal opinion on this measure in the coming hours.
Sate Pestage
Grand Vizier of the Empire
Assistant to Emperor Palpatine
Chair of the Imperial Senate
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| Ilanah_Thanatos | Date: Thursday, 02 Dec 2010, 5:51 PM | Message # 6 |
 Colonel general
Group: Users
Messages: 891
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| Senator Entrente, I find that your proposal is very well thought out and will certainly aid in the stabilization of the economy of the Empire. I wonder though if you feel that this will also benefit the average working sentient due to more stable conditions such as cost of living and employment?
Ilanah R. Thanatos
Senator of Chandrila
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| Crin_Star | Date: Friday, 03 Dec 2010, 3:34 AM | Message # 7 |
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Major general
Group: Users
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| "Its good to see such a well meant bill, however I feel that I must vote against this piece of legislation for the reasons I'm about to list. Firstly, I don't believe that we should, effectively, tie the hands of the senate or galactic empire by forcing a vote on all expenditures above the total amount of credits being brought in. It seems that if a measure passes by a majority through the senate then it should be allowed to continue on to his majesty. Secondly, I, personally, assign to the theory that spending by a government should be counter-cyclical and used to assist in the further stability of the galactic economy rather than balanced, which has been shown in the past to both deepen both booms and busts in the economy. I feel that while during a boom we should perhaps spend less money holding onto what we have and/or raise taxes to slow down the explosive growth, while during a slowdown, the Empire should spend more freely and/or lower taxes to boost small, and large businesses across the galaxy and prevent the bottom from falling out. With a balanced budget, spending what you take in essentially, you tend to spend more during the boom times, which does prolong them, but when money becomes tighter you spend less as well causing the cycle to deepen further than it would have otherwise. While longer periods of booms are useful in growth, the instability eventually leads to greater problems down the road.
Message edited by Crin_Star - Friday, 03 Dec 2010, 10:02 AM |
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| RonsardEntrente | Date: Friday, 03 Dec 2010, 5:57 PM | Message # 8 |
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Lieutenant
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Messages: 58
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| Indeed, Senator Thanatos, requiring a balanced budget would provide an added stability factor for the average Imperial citizen by eliminating the burden of a public debt and thereby directly reigning in inflation rates -- lowering the cost of living for all Imperial citizens. Senator Star, this bill would not, of course, give away the Emperor's discretion in adjusting budgetary levels as necessary for the security of the Empire, however, I believe the Senate should represent fiscal restraint in all of its business in order to preserve the Imperial treasury, e.g. the taxpayer's money, for only the most necessary and immediate of expenses. I believe your second point is primarily rooted in a divergent economic worldview from my own, and many 'Corellia-school' economists (free market, fiscal conservatism). My point of argument for a balanced budget is precisely opposite of yours: a balanced budget would tend to stabilize the overall economy without concern for boom/bust cycles. Also, this act would help prevent the nightmarish situation of stagflation -- where both inflation and unemployment increase, which can be encouraged by excessive government spending.
Ronsard Entrente Senator of Commenor
Ranking Member, Commerce Committee
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| Ilanah_Thanatos | Date: Friday, 03 Dec 2010, 7:59 PM | Message # 9 |
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Colonel general
Group: Users
Messages: 891
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| In that case, Senator, I will also vote in favor. Anything to assist the Empire's loyal subjects.
Ilanah R. Thanatos
Senator of Chandrila
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| LomenRyuun | Date: Monday, 06 Dec 2010, 4:26 AM | Message # 10 |
 Lieutenant general
Group: Users
Messages: 696
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| Very well thought out. Druckenwell is in favor.
Lomen Ryuun
Senator, Doldur Sector
Senator, Druckenwell
Representative, Monor II (10 BBY - 9 BBY)
Representative, Geridard
Representative, Boranall
Representative, Therenor Prime
Vice-chairman, Defense Committee (Temporarily suspended)
Controlling Shareholder - Druckenwell Arms Corporation
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| Toben-Domon | Date: Monday, 06 Dec 2010, 4:32 AM | Message # 11 |
 Major general
Group: Users
Messages: 347
Status: Offline
| I also find no issue with this bill. I am in favor.
Toben Domon
Senator, Sluis Van
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| Sate_Pestage | Date: Friday, 24 Dec 2010, 10:44 PM | Message # 12 |
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Lieutenant general
Group: Moderators
Messages: 639
Status: Offline
| I thank Senator Entrente for his patience while the Empire has composed its position on his measure. This process was delayed somewhat by His Majesty's consultations with the board of directors of Intergalactic Banking Clan, or IBC. These negotiations having concluded this week, I am pleased to announce, on His Majesty's behalf, that the IBC has agreed once again to forgive all Imperial debt for the last fiscal year, as a gesture of good will and allegiance to the Empire. The Senate will, of course, recall that the IBC also forgave all Imperial debt in fiscal year 8, and 7, and indeed in many years previous. I'm sure we are all pleased to see the IBC continue to do what is best for the Imperial interest, and not simply its own as it once did, most scandalously, in the Clone Wars. With that said, I will proceed to Senator Entrente's measure. There are many valuable articles to this measure, but its foremost purpose is to require the Senate to spend within its means. That is, Senators, if a proposal is so costly as to require deficit spending in order to fund it, this measure would require you to vote separately to authorize that deficit spending. His Majesty lauds Senator Entrente's intent to maintain the fiscal integrity of the Empire, and indeed he does not oppose the Senator's measure. I feel it should be noted, however, that His Majesty—and his subordinate, Lord Vader—were quite, shall we say, efficient in this week's negotiations with the IBC, and surely this demonstrates to the satisfaction of us all that the fiscal integrity of the Empire is best handled by a decisive, executive hand, rather than a legislative one alone. Therefore, while indeed His Majesty does not oppose this measure (it is, of course, the right of the Senate to impose upon itself these measures of fiscal discipline), he has also asked that I make known his belief that his power to override acts of the Senate "for the security of the Empire" applies, also, to the economic security of the Empire. I appreciate Senator Entrente's assurance that his measure is not meant, in any way, to impede this power. On a personal note, Senator Star, while His Majesty has impressed upon me his wish that, as head of state, he not be seen as endorsing one side or the other in this fiscal policy debate, I wish to state my own sympathy for the school of thought that you have explained here today. In the near future, I would like to see both you and Senator Entrente as instrumental in forming the Empire's fiscal policy, particularly in terms of balancing one school of thought against the other. I would like, especially, to see something of a synthesis of these views that take into account what I shall call the new economic realities that the Empire has brought about—this week's negotiations with the IBC would be an example of what I mean, in terms of the Empire's influence over financial institutions, as well as His Majesty's generous use of the Imperial treasury (that is, in creating more credits as needed as part of the Imperial program of quantitative easing—a program that the Senate, I have noticed, has been most gracious to support). But this is a subject for another time. With that, Senator Entrente, I thank you again for your patience and assure you that, if there is no opposition to the measure within the following days, it will be made law.
Sate Pestage
Grand Vizier of the Empire
Assistant to Emperor Palpatine
Chair of the Imperial Senate
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| Sate_Pestage | Date: Wednesday, 05 Jan 2011, 10:27 PM | Message # 13 |
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Lieutenant general
Group: Moderators
Messages: 639
Status: Offline
| And indeed, the measure passes with 83% in favor and 17% opposed.
Sate Pestage
Grand Vizier of the Empire
Assistant to Emperor Palpatine
Chair of the Imperial Senate
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