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[DEVELOPMENT] Unleash the War Bonds
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GalacticDiscourse090 is in DEVELOPMENT
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With a resumption of the civil war imminent, The Republic must ensure all hands are on deck to provide the country's defense against Nationalist aggression. The subsequent move toward a wartime economy has significantly increased production in all military and civilian sectors. Government subsidies towards these industries procured us the necessary resources to complete rearmament at a record pace. However, the adverse side effect of this unsustainable militarization drive is the government's colossal deficit accounting for nearly 30% of GDP. Should it not be fixed, in a few years, the country may be crippled by excessive debt and might not be unable to pay for those debts. While taking large amounts of debt is expected in a war economy, we need to quickly find alternate sources of income to mitigate the deficit before it goes out of hand.

Thus by government decree, War Bonds will be issued to the general public in order to help finance the war effort. In essence, these war bonds are debt securities backed by the Republic Treasury in order to avoid exorbitantly increasing the existing tax rate which is already unpopular enough. Should everything go swimmingly, and war bonds are sold out besides the strengthening of the Republic's tax collectors and government bureaucracy, we can expect a 50% decrease of the current deficit and buy us more time.

[Development 20 DP to State Bureaucracy]

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1 year ago