The budget for the Government of Leylandiistan & Gurvata for the year ahead has been released, outlining the planned tax income and spending of the National Treasury on the Government’s behalf. One of the largest budget surpluses in the micronational community has been recorded for the past financial year, proving the success of the Confederation’s simple tax system.
The National Budget for 2016 was released after the government entered technical financial shutdown following the expiration of the 2015 budget. The Co-Presidents released the budget today after extensive discussion on the previous year’s financial progress.
The first part of the budget consisted of a review of the past year’s budget and financial records. It showed that as well as tax returns beyond those projected, an unexpected donation from the Mercian Government to the Treasury made by the Lord Spiritual of Mercia resulted in a large income, totalling €162.50. Expenditure was 20% below target, with a lack of capital spending under the “Regional Improvement Grant Scheme” likely the cause, resulting in a large budget surplus of €78.00.
The most notable changes were in the area of taxes. The main income source for the Treasury, the National Contribution Charge, was halved from €2 to €1, with the reason being the large surplus left over from the previous budget. In addition, VAT and Corporate Profits Tax were abolished due to the fact that neither raised any money for the Treasury, and in the view of the Treasury, “overcomplicated the tax system”. No new taxes were created in the budget.
There are no major changes in expenditure, apart from slight variations in the allocations to the government’s spending programmes as well as a marginal overall increase in spending. The most notable statement in the expenditure plans was under the Enterprise Grant Scheme, where it was stated that the Treasury expects no further diversification of the economy this year, suggesting the government will focus on the agricultural sector and its sub-sectors heavily instead. The Government expects a surplus of around €28.00 by the time Budget Day arrives next May.
Included in this year’s National Budget are economic statistics collected by the National Treasury. It showed that seeds had been the only form of goods exported this year, with seeds exported to Cinnamon Creek and Lundenwic. Imports consisted of cookies from Lundenwic, as part of the “seeds-for-cookies” deal made with Lundenwic earlier this year. This establishes that the government accomplished one of its primary economic goals from the “Plan for 2016”, which was to trade goods with other micronations and export goods for profit.
With the National Budget enacted, the Government will now move on to addressing other areas of importance. Legislation is expected to be brought forward over the course of the month on a number of matters, while another Statement of Foreign Policy is expected to address the issues raised today in a productive foreign policy discussion had by the Co-Presidents following the budget discussions.