Chapter 25 : Funding crisis

The week reserved by Arthur was not only intended to give the newly appointed cabinet members time to familiarize themselves with their roles but also to provide them with the opportunity to access and thoroughly understand information about all aspects of the country. This preparatory period was crucial, as the success of the new administration depended on each cabinet member grasping the complexities of the nation they now governed.

These eleven cabinet members, with the exception of the six original governors, came from diverse official backgrounds. However, none of them had previously had access to the complete information about the country, which naturally limited their ability to fully comprehend the national situation. Under such circumstances, if they had been required to immediately begin the task of governing, they would have been as disorganized as a swarm of flies. Therefore, Arthur deemed it essential to grant them this adaptation period, allowing the cabinet to function more efficiently in the future.

In the blink of an eye, the week passed quickly, and soon the day of the cabinet meeting Arthur had mentioned arrived. The cabinet members, aware of the importance of this meeting, had resigned from their previous positions before this day. However, due to the varying situations of the legislative elections in each province, the original governor positions in each state had to be temporarily maintained simultaneously.

The same government building and the same conference room hosted the meeting, although the number of attendees had drastically decreased from 199 to 12. Sitting at the center, Arthur observed the expectant crowd and said with a smile, "Everyone, I believe you have learned about the basic situation of Australia after a week of preparation. Now we can officially begin the debate on the country's development plan and allow this nation to embark on its definitive rise."

"First, let's discuss the situation of our respective departments and your ideas. Everyone can speak freely. As long as the ideas are beneficial to the country's development, they can be presented for discussion," Arthur added with a smile. Although Arthur possessed the soul of a time traveler and a clear vision for national development, he understood that many hands make light work. The cabinet members, chosen for their capabilities, could offer valuable perspectives that even he had not considered.

"Let's start with the Ministry of Finance. What is the current financial situation of our country? How much available funding is left?" Arthur asked, looking at the Minister of Finance, Roger Joseph Ebert. As the saying goes, before sending troops into battle, one must ensure the supply of food and fodder. The same applies to national development: before formulating various development plans, it is essential to ensure that the country has sufficient funds. Without adequate funding, any development plan would be reduced to mere empty words.

"Your Highness, the situation is not ideal. Although our economy and various industries will see some degree of growth following the integration of the six original colonies into a single country, for now, the government lacks funds and can only maintain basic governmental operations," replied Roger Joseph Ebert, shaking his head regretfully. The process of Australia's integration had been very brief, and although various economic sectors showed signs of development, it would be impossible to obtain more tax revenue without a few years' time. Additionally, Arthur had previously reduced a significant amount of taxes, which directly decreased the Australian government's income.

"How much money is left in the account now?" Arthur asked, frowning. After the colonial reform, the independent tax collection system of each state was modified, so that most of the taxes collected were paid to the central government, with only a small amount remaining in the states. However, so far, taxes had only been collected once, and since Arthur had significantly reduced them, the government's tax revenue was just over a million pounds. Including other sources of income, the Australian government's total revenue was less than 3 million pounds. After deducting various expenses, the government's available funds were less than 2 million pounds.

"Your Highness, after deducting all expenses, the government only has a little over 1.9 million pounds," stated the Minister of Finance, Roger Joseph Ebert. This was because the previous interim government had not made large expenditures, limiting itself to paying public employee salaries. However, less than 2 million pounds was undoubtedly a negligible amount for the overall development of Australia. It was like a stone thrown into the ocean, unable to make waves.

When everyone heard this, they were stunned. While everyone was dreaming about the plans for their respective departments, Minister Ebert's words poured cold water, extinguishing the plans that were still germinating in their minds.

"Minister Roger, is this true? If the government only has this amount of funds, it won't even be enough to buy equipment," expressed Prime Minister Evan, the most surprised of all. During his tenure as Prime Minister of New South Wales, the annual tax revenue of that state amounted to two million pounds. How could the government's funds after integration be less than that figure?

"Of course, it's true. According to our fiscal policy, if we want to obtain revenue, we must wait until October of this year," nodded Roger Joseph Ebert.

Everyone turned their gaze to Arthur. After all, one of the main reasons for the current shortage of government funds was that Arthur had drastically reduced taxes. The implication was clear: since the government was in trouble, naturally, Arthur, as the ruler, had to find a solution.

"Alright, let's do it! On behalf of the Royal Family, I will lend the government 100 million pounds interest-free and, in addition, lend it 50 million pounds worth of industrial equipment at market price. This way, the government won't have to buy industrial equipment from Europe at high prices and will still have sufficient funds for development," Arthur announced, making the final decision and ending the tension of the meeting.

Seeing that the government now had the necessary funds and that their own plans could be carried out, everyone felt motivated and began to seek ways to obtain more resources.

"Industry is the absolute priority. Let's start with the plans of the Ministry of Industry," Arthur mentioned, addressing Pier Silvio Berlusconi.

Minister Pier Silvio Berlusconi was not nervous at all. He stood up and said, "Your Highness, our country's industrial development is very backward. Both basic industries and advanced science and technology industries are scarce. My suggestion is that, for now, we focus on the development of basic industries. Taking advantage of the mineral resources in the west of our country, we can build a large industrial base. Once our basic industries are consolidated, it will not be too late to develop advanced scientific and technological industries."

To be clear, Australia's industrial base was currently too weak to make a leap in a single step. Only when the most basic facilities and industries were completed could Australia concentrate its efforts on advanced technology research and eventually catch up with European countries. Arthur nodded, understanding the importance of establishing a solid foundation before aspiring to greater achievements. The meeting continued, with each cabinet member presenting their plans and discussing how they could work together to lead Australia toward a prosperous and powerful future.

. . . 

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