To maintain a budget surplus (in normal times), or not to maintain a budget surplus, that is the question. Whether it is…………but, hell! ,what is the point of a fiscal charter ? Why can’t our political leaders come into the modern era and just do it right ?
Do we mean a surplus overnight – needed in the morning - or a periodic surplus from operations gainfully carried on ? What decides ‘capital’ investment vs current spending ? normally whether immediate or for prolonged use or benefit requiring payback (including economic incentive). What funds are required and from what source over what period including for loan repayment ? What is a budget for ? normally a plan decided to be set up for execution and as time passes as a yardstick to facilitate management by exception and finally variations become input to the next budget. What is a surplus for ? normally to be available for reserve strength, advanced debt repayment, contingencies and abnormal times, investment for income with loan avoidance and even, can it be said - repayment to taxpayers !
Assuming all ancient score-keeping, forecasting and ‘what will happen if ’questioning, investment evaluation and technical conventions are in place: ….just do it, and please get it right next time. |
News and Views >