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toubab1020
12306 Posts |
 Posted - 28 Jun 2013 : 12:30:38
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OK any bright spark on Bantaba able to analize these proposals and will they work?
"According to him D189 million will come from gradual increase in fuel prices and that the remaining D111 million will be financed through increased domestic borrowing. Of course, one should expect an increase in fares as fuel pricesrise. Government debts must also be paid from the government coffers."
http://www.foroyaa.gm/editorial/13591-the-300-million-supplementary-budget-will-come-from-the-people
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"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Nyarikangbanna
United Kingdom
1382 Posts |
Posted - 28 Jun 2013 : 16:11:12
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Yes, it will work. The people will just have to cough the money later on while the govt finances its short term objective.
Domestic debt is normally accrued through treasury bills. The priority of the govt is to get the money quickly and then think about repayment when the bills matures probably a year later. That means more of our GNI (Gross National Income) will be committed to debt servicing rather than equipping our health centres and hospitals with drugs and essential medical equipments; our schools with teaching materials and better pay for teachers; our farmers with seedlings, fertilisers and subsidies etc.
This could also have consequences for future budgets as there may not be enough money, as a result of debt payment weathering, to provide essential public services and pay for the cost of governance otherwise known as the Recurrent expenditure. That means the govt will have to find ways to get money to plug the shortfall and that could mean more tax, more borrowing or a combination of both.
Fuel price hike will just be an indirect way of getting money from the people as this may result to fare hikes and electricity bills could also go up.
Thanks |
I do not oppose unity but I oppose dumb union. |
Edited by - Nyarikangbanna on 28 Jun 2013 16:21:30 |
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toubab1020
12306 Posts |
Posted - 29 Jun 2013 : 12:15:37
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Hank you for your expertise in translating complex matters.
quote:
Originally posted by Nyarikangbanna
Yes, it will work. The people will just have to cough the money later on while the govt finances its short term objective.
Domestic debt is normally accrued through treasury bills. The priority of the govt is to get the money quickly and then think about repayment when the bills matures probably a year later. That means more of our GNI (Gross National Income) will be committed to debt servicing rather than equipping our health centres and hospitals with drugs and essential medical equipments; our schools with teaching materials and better pay for teachers; our farmers with seedlings, fertilisers and subsidies etc.
This could also have consequences for future budgets as there may not be enough money, as a result of debt payment weathering, to provide essential public services and pay for the cost of governance otherwise known as the Recurrent expenditure. That means the govt will have to find ways to get money to plug the shortfall and that could mean more tax, more borrowing or a combination of both.
Fuel price hike will just be an indirect way of getting money from the people as this may result to fare hikes and electricity bills could also go up.
Thanks
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"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Nyarikangbanna
United Kingdom
1382 Posts |
Posted - 29 Jun 2013 : 13:21:55
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'Hank you'; that must be lincolnglish, right???  or is it just typo. I do a lot of typos myself when writing from my blackberry. The device is a nasty saboteur of my literate standing. All smart phones do it anyway.
Thanks |
I do not oppose unity but I oppose dumb union. |
Edited by - Nyarikangbanna on 29 Jun 2013 13:29:37 |
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