MA: Mideast Budget Amendment (Passed)

[ZuWo]

I will support this. While I'd prefer to set the percentage at 110%, I can also live with 115%.

In general, a budget amendment is a good idea because it actually requires our regional government to pass a budget, which makes governing much more interesting. In the current situation it is easy for a governor and the Assembly to refuse to pass a budget because they either don't care or are too lazy to do the necessary work. The question remains, though, what happens if we as a region adopt this amendment and a future government simply ignores it. What should be the consequences, if any?

[ZuWo]

Nay

[ZuWo]

I think a percentage of the GDP makes more sense, considering factors such as the general development of the economy, inflation, deflation etc.

[ZuWo]

I agree. Unfortunately the office of GM has been vacant for quite some time now so we just need to wait.

[ZuWo]

If the goal of this bill is to limit the government's long-term debt without tying its hands during times of economic emergency, wouldn't a GDP cap somewhat defeat that purpose, since GDP will necessarily shrink during a recession?

I see what you mean. If, during a recession, the government deems it wise to stimulate the economy with additional expenditures, a GDP cap can indeed be counterproductive. Indeed, in times of a crisis the GDP is lower. As a consequence, the government cannot spend as much money (in raw numbers) as in a situation where the GDP is higher.
I am not a fan of massive government intervention even during a recession, but for someone who wants the government to take drastic measures in times of economic hardship your point is very valid.

[ZuWo]

Aye