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What is the point of a fiscal charter ?

posted 13 Oct 2015, 03:13 by Peter Webb   [ updated 13 Oct 2015, 05:12 ]

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.

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