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[DEVELOPMENT] Government Restructuring and Response to the Financial Crisis
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GalacticDiscourse090 is in DEVELOPMENT
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Continuing the Government Reform plan implemented by the Worker's Party in the past year. All efforts would concentrate on reforming the Polynesian bureaucracy which turned out to be far more byzantine and difficult to manage than expected. Almost as if Polynesia's bureaucratic institutions are an insulated ecosystem, they react with hostility towards reformism which has greatly impacted our tax collection capabilities. Funds designed to go into social policies either get lost through poor bookkeeping or just corruption. Vercroe's government however is much more stubborn and resolute than any bureaucrat and one by one, offices across the empire fell in line with the restructuring plan. This is not the end of our woes regarding our state bureaucracy and all the red tape involved. It will take years to fully complete the restructuring plan, but it is a step in the right direction.

Above all right now the government's goal is to reduce the rapidly increasing deficit. Fortunately for the government, it could have been worse had it not for lucrative and timely arms purchases from foreign states. The Ministry of Commerce is reporting for the first time a 500 million tara deficit in the government which if not solved by this year will increase our debt significantly. Not to worry however as with recovering financial institutions being given a fat rescue package by Vercroe's government and improving consumer confidence after the scare of the Millenium Financial Crisis, it is expected that production and unrest will decrease by the 2001 elections. at the latest 2002-2003. Vercroe has chosen instead of adopting austerity measures at a dangerous time both for the party and the people, they will instead continue social policy spending even while taking in large amounts of debt in the short term. The government disclosed the goal is to improve tax collection while reducing the tax bracket gradually both to reduce the tax burden of the average worker and middle-class populations while stimulating consumer spending in the economy.

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2 years ago