Category Archives: Fiscal Freedom

A retirement bill currently under negotiation in the Senate gives rich Americans a tax break by bringing forward the payment schedule to remain revenue-neutral within the 10-year budget window, but will ultimately add to the national deficit unless a future Congress raises taxes.

The Senates Enhancing American Retirement Now (EARN) Act raises the age at which taxpayers must start making withdrawals from 72 to 75, allowing them three extra years of tax-free growth.

Most Americans start living off their retirement accounts well before the age of 75, so the bumped-up age requirementreally only affects the wealthy, who often use their retirement accounts as tax-sheltered investment vehicles rather than as savings to cover the cost of living in old age.

The bill throws another bone to rich taxpayers and the Wall Street fund managers who look after their money by allowing them to deposit an additional $10,000 a year into their retirement accounts beginning between the ages of 60 and 63. Setting aside an extra $10,000 a year is something most Americans cant afford to do.

To pay for these tax breaks, the legislation doesnt raise taxes elsewhere, as its supposed to. Itcircumvents the problem by allowing retirement plan participants to opt for Roth IRAs instead of traditional ones.

With Roth accounts, taxes are taken out when you put money into them as opposed to when you take money out. This brings in revenue within the legal budget window, but means the tax cuts arent actually paid for in the long term.

These pay-fors are the same as the ones in the retirement bill that passed the House. Theyre a gimmick, Steven M. Rosenthal, a senior fellow at the Tax Policy Center, a left-leaning Washington think tank, said in an interview. Ive seen every gimmick in the book, and Roth IRAs are the worst.

Its an egregious use of budget scorekeeping rules, Rosenthal added. He furtherlamented that traditional notions of fiscal responsibility these days seem to be beyond the capacity of both Democrats and Republicans.

Todays Republican Party is very different from the Republican Party of fiscal conservatism long ago. Republicans are borrow-and-spend, Democrats are tax-and-spend. But the reality is that tax cuts do not pay for themselves, and its often easier to build bipartisan support around something when you borrow to make it happen rather than tax, he said.

Papering over long-term revenue losses with fancy accounting may be less troubling to economists when interest rates are at zero, but high inflation in the wake of the pandemic has caused the Fed to begin raising rates and tightening its overall monetary policy.

With inflation well above our longer-run goal of 2 to 3 percent and an extremely tight labor market, we raised the target range for the federal funds rate at each of our past three meetings, resulting in a 1.5 percentage point increase in the target range so far this year, Federal Reserve Chairman Jerome Powell told Congress this week. The committee reiterated that it anticipates that ongoing increases in the target range will be appropriate.

This could mean that long-term deficit-expanding measures like the congressional retirement packages will be more of a burden on taxpayers 10 years down the line.

The House version of the Senates retirement bill, known as Secure 2.0, was the second major retirement bill to pass a chamber of Congress in only three years. It received nearly unanimous support and a vote of 414-5, with every present Democrat voting in favor of the bill and only some of the most conservative Republicans, including House Freedom Caucus Chairman Andy Biggs (R-Ariz.), voting against.

Wall Street has come out infavor of the bill, since money managers are paid in the form of fees and more money in retirement accounts means more fees for money managers.

The American Bankers Association, the National Association for Fixed Annuities, the Insured Retirement Institute and other financial and retirement industry trade groups thanked Senate Finance Committee Chairman Ron Wyden (D-Ore.) and ranking member Mike Crapo (R-Idaho) for the legislation in a June 21 letter posted by the U.S. Chamber of Commerce.

Talk to the folks on the committee, the members of Congress. They dont think its a gimmick, and thats why theyve used this. This is a fully paid-for bill. It has to be paid for in order to pass thats the rule of Congress and these are the mechanisms they came up with, Paul Richman, head of government and political affairs at the Insured Retirement Institute, a retirement industry lobbying group, said in an interview.

In their letter to Wyden and Crapo, the lobbies encouraged a swift passage of the bill into law, writing that the Committees dedication to retirement security is a crucial step to finalizing retirement legislation during this Congress.

While geared toward wealthy Americans, both the House and Senate retirement packages do contain provisions for the average household, which pulled in about $67,500 in 2020 nearly 3 percent lower than the 2019 median income of almost $70,000.

These include an expansion of the savers tax credit, which subsidizes retirement account contributions for people at the low- or middle-income level by giving them a 50 percent government match for contributions up to $2,000.

That extra $1,000 a year could add a small boost to the account balances of the low- and middle-income households, but it would still leave them with far less than the new incentives for the wealthy in the bill, Frank Clemente, head of the left-leaning advocacy group Americans for Tax Fairness, wrote to Wyden in a June 21 letter.

His group also appreciated the fact that the Senates EARN Act will lead to workers participation in 401(k) and 403(b) retirement plans [by] encouraging employers with a tax credit to automatically enroll their workers in retirement plans (unless the workers opt out), allowing employers to consider employees student loan payments for purposes of matching contributions.

But Clemente wrote that these improvements are marginal and only modestly help low- and middle-income people whose retirements are less secure.

The retirement system is upside down. It rewards those who dont need help and gives very little to those who do need help, the Tax Policy Centers Rosenthal said. But of course the retirement industry complex is very, very powerful.

Read more:

Senate retirement bill benefits wealthy Americans - The Hill

1. Could you provide a brief background on yourself?

Born in Chicago, Illinois, I lived in Nashville, Tennessee, before moving to Fargo, North Dakota with my family where I graduated from high school. Fargo was a special place to grow up as it was very family-friendly, safe and had excellent public schools. In fact, my grandmother, for whom I was named, taught geography and social sciences in the public schools there for four decades. I even had her as my geography teacher in seventh grade. After high school, I went to Carleton College, in Northfield, MN, where I received a bachelors degree in International Relations magna cum laude. After living in Minneapolis, Minnesota, for a year, I moved to Cambridge, Massachusetts to go to Harvard Universitys Kennedy School of Government where I received a masters degree in public policy. I joined the State Department as a Presidential Management Fellow in 1990 and worked in the Political-Military Bureau, but quickly joined the Foreign Service where my first post was in Cairo, Egypt. I learned Egyptian Arabic before being posted there, which is why you may hear me speak misry. Since joining the Foreign Service, I have been posted in Egypt, France, Tunisia, Morocco (with a brief stint in Libya), Colombia and now Mauritania. I have served half of my 32 years at the State Department in Washington, DC in the Bureaus of Counter Terrorism, Near Eastern Affairs, and Western Hemisphere Affairs, as well as in the Operations Center and the Executive Secretariat where you travel with the Secretary of State for domestic and international trips. I had the pleasure of working with Madeleine Albright when I worked in the Executive Secretariat and went to more than 20 countries during six months alone. I now live in Nouakchott with my four adopted Mauritanian cats who showed up in my garden one day with their mom. They must have known that I had adopted four cats in Morocco when I lived there!

2. You have now lived in Mauritania for more than a year. How do you find the country, its culture, and its people?Before I came to Mauritania, people in Washington DC told me to expect a beautiful country with generous and hospitable people, rich in natural resources and scenery. Even so, Ive been pleasantly surprised at how much Im enjoying my time here. My mom and I had the pleasure of traveling to Chinguetti and Ouadane, where we learned so much about the rich history at the crossroads of learning and scholarship. Near Ouadane, we got to experience the fascinating landscape by climbing to the top of the Eye of Richat. Ive also visited the National Parks of Banc dArguin and Diawling which are beautiful places to visit, see wildlife and just relax. And Ive also had the opportunity to enjoy the seafood of Nouadibou and see the beautiful coastline from Cap Blanc. I have found Mauritania to have such interesting landscapes and an incredibly rich history. And its true what they say about Mauritanians being legendary for their hospitality. Ive enjoyed so much tea and conversation, and many delicious meals since I got here more than a year ago.

3. How have U.S.-Mauritanian relations developed since your arrival in the country?The U.S.-Mauritania relationship remains a strong partnership built on trust, shared interests, and common goals. Since my arrival, Im proud to say that the United States and Mauritania have worked closely on an increasing number of priorities and projects. Ill highlight just a few of these partnerships: In March of this year, the U.S. government in partnership with Ministry of Justice and the Commissariat on Human Rights bolstered Mauritanias law enforcement efforts to identify and refer human trafficking cases through the justice system. On health, the U.S. government has donated more than 1.8 million doses of the COVID-19 vaccine to Mauritania, and we continue to work together with the Ministry of Health on future deliveries. And, last October, Mauritania hosted the most senior-level U.S. government visitor in recent memory, Principal Deputy National Security Advisor Jonathan Finer. Finers visit underscored our support for strengthening Mauritanias ongoing broad-based reforms. In addition to the visit by Mr. Finer, we have also hosted several other high-level visitors including the Deputy Commander of AFRICOM, General Smith, as well as the Ambassador-at-Large for International Religious Freedom Rashad Hussain. All of these visits point to the importance the U.S. places on our relationship with Mauritania.

4. As Ambassador, what are your priorities for the U.S.- Mauritanian bilateral relationship?Our goals for the U.S. Mission in Mauritania are to see Mauritania become more secure, democratic, and prosperous all of which enhance Mauritanias status as a stable and important U.S. partner in the region. To achieve this, we build on a strong foundation of bilateral cooperation as we seek to support the efforts of Mauritanias government, private sector, and civil society to increase economic opportunities, strengthen democratic institutions, and promote tolerance and human rights.

5. You became Ambassador to Mauritania in 2021, at the height of the COVID-19 pandemic. How do you view Mauritanias handling of the pandemic up to the present?The United States was one of the first countries to assist Mauritania with what was at first a disease without a vaccine. In 2021, we helped Mauritania acquire 3,000 difficult to find Viral Transportation Media (VTMs) and hundreds of thousands of Personal Protective Equipment (PPEs). The VTMs are vital testing supplies that helped Mauritania detect, prevent, and respond to the threat of COVID-19. The PPEs assisted the workforce and first responders safely carry out life-saving interventions.

When the vaccine capacity rolled out, the United States made available billions of COVID-19 doses to the world through the COVAX Initiative. To date, the United States has donated 1,843,410 COVID-19 doses to Mauritania. These vaccines have helped Mauritania to position itself as one of the most vaccinated countries in Africa. These are a combination of Astra Zeneca, Johnson & Johnson, and Pfizer doses.

Additionally, on the non-vaccine side, the U.S. has provided Mauritania with $6.3 million in COVID-19 Response Mechanism (C-19 RM) support, which is helping Mauritania mitigate the impact of COVID-19 on three Global Fund-supported diseases AIDS, Tuberculosis, and Malaria. Thanks to this effort, Mauritania will improve its local oxygen production, expand COVID-19 capacity-building through targeted training, and acquire medical supplies and equipment critical to the response. Last but not least, the Embassy is proud to work closely with the Ministry of Health on the Field Epidemiology Training Program, with $620,000 in funding from the Centers for Disease Control, to improve Mauritanias capacity to prevent, detect, and respond to public health crises.

6. The U.S. Embassy has been investing considerably in youth projects (Tamkeen $7m and Nafoore $17m). What are some of the outcomes that you expect from these initiatives?The global pandemic propagated isolation, which has been hard on everyone, American and Mauritanian alike. Add to that Russias aggression in Ukraine, which has had major effects on the importation of wheat, and contributes to inflation it hasnt been easy on Mauritanian youth. But young people under age 35 represent 70% of Mauritanias population and its greatest potential of human capital, and according to recent studies, disadvantaged youth lack employment or job opportunities, and they feel the lack of a supportive, enabling environment. In spite of all that, young people want to contribute in productive ways to their society. The American Embassy recognizes the great potential of Mauritanias young people and wants to support them in the most productive way.

The USAID program Nafoore (which means added value in Pulaar) aims to increase the resilience of vulnerable youth to resist radicalization and extremism by fostering skills training, vocational education and building supportive youth networks. Some of the outcomes of the project will include increased access to sustainable job opportunities, training on conflict mitigation, psycho-social support and inclusive, youth friendly spaces.

The USAID program Tamkeen (which means empowerment in Arabic) will strengthen Mauritanian youth capacity to lead positive civic change through leadership skills training in addition to building youth focused networks that promote civic engagement. Outcomes will include supporting locally based mechanisms for stakeholders to advance social cohesion, creating a learning focused platform, and recognizing and countering mis- and dis-information campaigns.

We look forward to opportunities to coordinate with other youth focused activities and to learning and adapting the activities to the extent possible to attain the highest positive impact on Mauritanian youth. Mauritania has so many resources and great potential.

7. The U.S. Embassy in Mauritania has worked to combat corruption in Mauritania. Could you describe some of the concrete steps the Embassy has taken to do so?The U.S. Embassy fully supports President Ghazouanis efforts to fight corruption, increase government transparency, and curb illicit finance. As detailed in the first-ever United States Strategy on Countering Corruption released last December, U.S. embassies have elevated anti-corruption work as a priority worldwide. We improved our risk management processes related to foreign assistance, and we supported partner governments capacity and will to counter corruption. Specifically, over the next year, the U.S. government plans to support local civil society groups to better advocate for fiscal transparency in Mauritania.

8. As violence in the Sahel continues to increase, what role will and/or does Mauritania have in the U.S.s strategy for the region?For the last eleven years, Mauritania has been an oasis of stability in an increasingly fragile Sahel. The U.S. applauds Mauritanias role in countering violent extremism and terrorist activity within its borders. Because we see Mauritania as a critical influence in strengthening regional security, weve invested heavily in the capability and capacity of Mauritanias military and security forces through a robust portfolio of cooperation programs. In the last year, the U.S. delivered an English language lab to the G5 Sahel Defense College; concluded a multi-year, $14.9 million support program for the Mauritanian Battalion supporting the G5 Defense Force; and sent military officers to advanced programs at elite American military institutions through the International Military Education and Training program. Mauritanias commitment to its own defense as well as to the stability of the region is key to future peace and a reduction in violence. The U.S. will continue assisting Mauritania to achieve these vital objectives.

9. Despite its relative political stability and security, Mauritania remains classified by the U.S. Government as high risk. Do you concur with that classification based on your time here?Actually, Mauritania is currently classified the same as many other countries, including Guatemala, Saudi Arabia, and Japan. The State Department reevaluates and changes these travel classifications as needed. You can read more about the U.S. Governments travel advisories at travel.state.gov.

10. Your accreditation as Ambassador to Mauritania a year ago coincided with the launch of The Key. What does The Key represent to you and your embassy?I cant overstate the importance that Americans place in the first amendment to our Constitution the one that talks about freedom of the press, and freedom of speech. A free press with journalists that research and report on stories important to the public, who are trained to analyze and explain is vital to a high-functioning democracy. Freedom of the press matters because without it, the public wouldnt know what was going on in their communities and their country. A free press informs voters and a democracy thrives on informed voters. For all these reasons, I applaud your initiative, and the hard work of all journalists across Mauritania. In addition, an English-language newspaper aligns well with the Embassys efforts to promote English language capabilities amongst young people in Mauritania, helping them to communicate in todays world language while building technical and professional skills. I congratulate you for your efforts and accomplishments in the last year as the only English-language newspaper in Mauritania.

11. Current oil exploration presents Mauritania with a potential future as an oil exporting state. What are your views on this development and how do you feel Mauritania could best leverage the discovery of oil to support domestic development?Hydrocarbons production certainly has the potential to transform Mauritanias economy over the next decade and, from what I have seen, this potential is being realized with the Phase 1 implementation of the Greater Tortue Ahmeyim (GTA) project operated by BP and the American company, Kosmos Energy. In addition to the oil and gas projects, the U.S. government and the U.S. private sector are very excited that Mauritania is establishing itself as a renewable energy leader on the continent. By leveraging its unique natural resources and geography, and partnering with international firms, solar and wind energy could make Mauritania an energy exporter. More importantly, these renewable energy projects, coupled with the GTA project, could deliver cheap, reliable electricity throughout Mauritania and allow for new industries to grow. And, as Mauritania begins to see significant revenue from these projects, the U.S. Embassy will support efforts to ensure that all Mauritanians benefit from the countrys wealth of resources.###

By U.S. Embassy Mauritania | 24 June, 2022 | Topics: Ambassador, News, Speeches

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Ambassador Kierscht Interview with The Key - US Embassy in Mauritania - USEmbassy.gov

All-Options Pregnancy Resource Center, a Bloomington nonprofit focused on reproductive care, recently has been fielding about 60 to 75 requests for abortion funding per week, according to State Programs Manager Jessica Marchbank. All-Optionscan only fund about 30 at a time.

Each week the volunteers listen to every voicemail and read every text message seeking help in obtainingan abortion. Marchbank has to prioritize exacerbating circumstances such as minors, people in domestic violence situations or those experiencing homelessness. Next, she considers those with a higher gestation, such as those who are 10 weeks or more pregnant.

I cannot tell you the number of times people have just thanked me, not for funding them, but for treating them like a human, she said. At first it felt really awesome. And now it actually feels really terrible. Because I shouldnt be getting a pat on the back for treating someone like a human being.

More: Supreme Court overturns Roe v. Wade, eliminating constitutional right to abortion

The Supreme Court on Friday released an opinionoverturning Roe v. Wade, returning to each state the ability to determinea pregnant persons access toabortion. For now, access to abortion remains legal in Indiana.

A majority of adult Americans, 61%, believe abortion should be legal in all or most cases, according to a Pew Research Center poll conducted in March 2022.

Abortions are still going to happen, Indiana University professor of law Jody Madeira said, but maternal mortality rates will increase. In Indiana, the maternal mortality rate is already about 3 times that of the national rate, according to the Centers for Disease Control and Prevention. And if the cost to access an abortion rises, more pregnant peoplewill attempt to self-abort, she said.

Indiana's lawmakers appear poised to further restrict or ban access to abortion in the state. Lawmakers penned a letter to Gov. Eric Holcomb asking him to call a special session and he has, albeit for a different reason. The session is scheduled for July 6, meaning access in Indiana could change dramatically within weeks.

LaKimba DeSadier, Indiana state director for Planned Parenthood Alliance Advocates, said Planned Parenthoods doors, including Bloomingtons, will remain open for reproductive care even if abortion access is restricted or totally banned.

More: Indiana poised to limit abortion access after Supreme Court ruling overturning Roe v. Wade

No matter what, we will encourage our patients to continue to reach out to us to get help to help navigate their options, she said.

That reproductive care includes determining if a patient is pregnant and what they may need in lieu of seeking abortion care in another state, DeSadier said, but Planned Parenthood must comply with the law.

In 2019, Illinois lawmakers ensured access to abortion care by declaring it a fundamental right. Indiana and surrounding states are expected to outlaw abortion in most instances, so Illinois will become a safe haven for pregnant people. Tennessee abortion services provider CHOICES has plans to open a new clinic in Carbondale, Illinois, about a four-hour drive from Bloomington. The clinic is scheduledto open in August.

Abortion Finder is one resource for people seeking care close to them, DeSadier said.

People should also be aware that there are organizations known as Crisis Pregnancy Centers that on the surface appear to offer womens health care, but in fact are not staffed by medical professionals and exist solely (to) keep women from having abortions, she said.

In Bloomington, the Women's Care Center is such an organization.

Marchbank said she could help more people if she had the money, but All-Options isfunded solelyby donations and grants. She has to tell those she cant help to wait a week or two and try again.

It doesnt feel great to suggest to someone who doesnt want to be pregnant, to be pregnant longer, Marchbank said.

This year, All-Options has aided more than 400 people in accessing abortion care, Marchbank said, including financial assistance, connecting people to a clinic or supporting them around their decision. So many people feel stigmatized, she said.

In addition to abortion funding, All-Options offers diapers, wipes, clothes, pregnancy tests and more for pregnant people and families in need. Anyone can request supplies or seek help.

Anyone in need, we dont ask them to prove anything, she said.

All-Options supports any choice a pregnant person makes, Marchbank said, whether that be parenting, adoption or abortion.

We dont have a stake in the outcome of that pregnancy, she said. Whatever you decide, were here.

More: Indiana abortions by the numbers: How many people have procedure here

All-Options services aid about 200 families a month. Every month new people are seeking supplies or parenting resources, Marchbank said.

Planned Parenthood has patient navigators, a team of people who work with anyone who has questions or concerns and who can help patients with financial or logistical support, DeSadier said.

Were going to build and reclaim the freedom that is ours, she said. We will never stop fighting to restore and defend the rights of people seeking sexual and reproductive health care.

All-Options volunteers undergo 40 hours of virtual peer counseling training and pregnancy option workshops to support people without bias, Marchbank said.

People arent used to being able to talk to someone about their options in just an open-hearted way, she said. Our training is designed to help people recognize their own bias and be able to meet people where they are and help them in a judgment-free way.

Marchbank said the nonprofit also offers a support line that is answered solely by members of the clergy, so callers can talk to a religious authority who has been trained and is comfortable talking about and supporting abortion.

A lot of times, people may come from a religious background, and they may want to have an abortion, she said. And while they mostly feel OK about it, sometimes they need to talk to somebody in the faith that theyre in.

Currently, the law inIndianamakes it difficult toget an abortion past 13 weeks, six days, Marchbank said.

All-Options will continue the same work regardless, including funding people to go out of state to receive abortion care, Marchbank said, which the organization does now. Some people prefer to go to clinics in states such asIllinois, where laws regarding abortion are more friendly, she said. About 40% of those receiving abortion funding from All-Optionsalready go out of state.

The organization plans to keep providing essentials, care and supporting access to abortion. Marchbank said shes hopeful her budget will increase during the next fiscal year, as there was aninflux of donations afterthe Roe v. Wade opinion was leaked.

Futures Family Planning Clinic does not provide abortion services, but does provide birth control counseling and supplies, exams, pregnancy counseling, STD testing, emergency contraception and more.

Monroe County Health Department Administrator Penny Caudill said reproductive healthcare is always important. Access to education, healthcare, and birth control is essential to reducing abortions, she said.

With Roe v. Wade overturned, pregnant people will have fewer options, Caudill said.

It will become more complicated for people to get information in a timely manner so that they can make their decisions and act accordingly, she said.

The Futures Family Planning Clinic, which has been open since 2006, is a Title X clinic, meaning it receives funding to provide comprehensive family planning and preventative health services, according to Health Resources & Services Administration.

What we can do is give people information on all their choices, Caudill said.

Anyone can come to the clinic, no matter their income. Caudill said the fee for services is on a sliding scale, meaning those who make more pay a higher fee than someone with a lower income.

People of color and people in rural areas will be disproportionately harmed by an abortion ban because of where they live, DeSadier said. According to USA Today, manystates in the South and Midwest have restrictive abortion laws ready now that Roe v. Wade is overturned.

Madeira saidlawmakers in states including Indiana now will be able to pass restrictive abortion laws and criminalize abortion.

Overturning Roe v. Wade is not a solution, DeSadier said. Its just not. Elected officials will be doing harm to so many groups of folks, intentionally or not intentionally.

More: How access to abortions has changed in Indiana since Roe v. Wade

Voting, DeSadier said, is essential for constituents to hold their elected officials, who are determining what people can do with their bodies, accountable.

Madeira said the ruling is the most socially, culturally and legally far reaching overturn she can remember.

Weve had that right for 50 years, she said. Weve learned that that right is critical to United States society.

A federal law could take the place of Roe v. Wade in protecting abortion access, but it would be extremely difficult to pass, Madeira said.

Its an earth-shaking development,"she said."Its a development that suggests that no precedent is safe.

Reach Luzane Draughon at ldraughon@gannett.com or @luzdraughon on Twitter.

Read more:

Roe v. Wade overturned: How will it affect abortion access in Indiana - The Herald-Times

All seven provinces of Nepal presented their fiscal bills (budgets) for the next fiscal year beginning mid-July in their respective Provincial Assemblies last Wednesday. The cumulative allocation of Rs305.46 billion is only about 17 percent of the budget of Rs1,794.83 billion that is in the process to be ratified by the federal parliament. All 753 local units have to present their budgets by mid-July, and are set to table their policies and programmes by June 25 in their municipal/rural municipal assemblies. The policies and programmes, in principle, provide the basis for the budgets.

The local units, barring a few large urban municipalities, are almost entirely dependent on formula-based fiscal transfers in the form of grants and revenue sharing, mainly from the federal, and to some extent, from the provincial treasuries. Their own source revenue contributes only marginally to their income. Nevertheless, a local unit receives at least Rs150 million in the upcoming fiscal year from the higher tier of government. The continuation of such a top-heavy allocation practice is a clear revelation that devolution of budgetary power to subnational governments or implementation of fiscal federalism, in the true federal spirit, is severely constricted.

Chronic ailments

The budgetary practice of the provincial and local governments during the last five years of their existence neither captured the federal spirit of fiscal independence nor shook off the chronic malaise of Nepal's budget system. The capital expenditure allocation in Nepal's national budget has barely crossed 25 percent of the total funding over the past two decades. According to the latest economic survey published by the Ministry of Finance, the capital budget allocation, even at the local level, is less than 40 percent of their total budget. It defeats the very objective of federalism with the substantially empowered local government meant to deliver services to the people at their doorsteps by spending most of the funds on developmental, not recurrent, expenditures.

The disconnect between the policies and programmes and the budget allocation has now extended up to the local level. The local government budgets have also become victims of ritualism, cheap populism and pork-barrel disbursement. The most problematic feature in local and provincial fiscal governance is no longer scarcity of financial resources, but rather a stark absence of absorption capacity and lack of accountability wherever major expenditures were made. In the fiscal year 2021-22, the total capital expenditure of the local governments stood at 56.6 percent of the capital allocation, while at the provincial level, it was 64.6 percent. The year before that, it was even less, 46.2 percent, at the local level. Projects to be implemented by local governments are essentially small and in the interest of the direct users. As such, the expenditure of the total capital allocation is an ideal possibility. For the new set of local executives elected for the next five years, an impressively improved level of capital expenditure must be on top of their budget implementation plan.

Undoubtedly, this imperative can be addressed only with adequate political will, the required expertise in budget formulation, and a thorough understanding of the issues surrounding the low capital expenditure. The provincial budgets presented last week blatantly missed taking corrective measures even though it was the fifth and the last budget to be presented by the current set of elected executives as the elections for the Provincial Assemblies are due in less than a year. The newly elected leadership at the local level certainly needs to demonstrate its understanding in finding ways for better fiscal governance in general, and augmenting capital expenditure in particular to address the development needs of their electorates better.

Low spending

At the local level, the challenge of formulating a budget generally in an acceptable format persists. Local governments are almost entirely dependent on the windfall grant amount rather than rooting the budget in own predictable sources. The freedom of budget-making is thus constrained, and it is always possible that even the amount allocated for supply-driven projects is difficult to spend compared to demand-driven projects.

Legally, the deputy chief in each municipality is the coordinator of the local revenue advisory committee. In practice, this is akin to the "finance minister" at the municipal level. However, this arrangement has not been able to deliver the goods in the same spirit and output. The gap between the knowledge of public financial management of the elected deputy mayor (deputy chair in rural municipalities) in particular and the role assigned to them by the Intergovernmental Fiscal Arrangement Act 2017 is glaring.

Another reason for low capital expenditure is the lack of institutionalisation of the process from project identification to budget allocation. The projects are often picked on the basis of political self-interest without any cost-benefit analysis. Other project readiness parameters like a detailed project report (DPR), project implementation, environmental impact assessment (EIA), land acquisition plan and approval to cut down trees are seldom considered before earmarking. The practice of creating a project bank is still a pipe dream even at the centre, let alone at the local level.

Confusion pertaining to public procurement is a critical factor contributing to the low level of capital expenditure by the local government. The law directly related to public procurement, even at the local level, is the Public Procurement Act 2007. It has seen 11 amendments putatively to make it usable even to local levels but has failed to facilitate the process.

The highly centralised mindset of carrying out public procurement under a single federal law proves counterproductive. If the idea of forcibly enforcing this law even at the local level is the effectiveness of resource mobilisation, cost reduction and enhancing transparency, the federal authorities failed to understand that it can be better done by making the provincial and local levels responsible and accountable within their respective jurisdictions according to the laws or mechanisms like public hearings designed and implemented by themselves. It is an appropriate time while visioning and scoping for their next five-year term for local governments to consider these factors in their development plans and budget allocation. The new leaders must dare to depart from the beaten path for the better.

Here is the original post:

Constricted devolution of fiscal power - The Kathmandu Post

Sometimes, people in the position of authority tend to get annoyed when citizens approach them or demand information about the resources or the office entrusted to them for the citizens. Some public officers hate to see the freedom of information requests in their offices, especially when it has to do with the accountability of public resources utilisations, or how they exercise the power and authority given to them. Some even ignored, neglected, failed, or refused to respond to the Freedom of Information (FOI) request issued to them because they feel not obligated to do so, which is a fragrant disobedient to the rule of laws.

It is important we get this message clear. Nobody has the right to investigate your private life if you are not working for or depending on the governments money for daily survival. Public monies are peoples money, and people deserve the right to know how its being used. Public office holders should know that they are holding the office in trust for the people, and it is not their personal property or inheritance from their ancestors.

It is a choice whether to remain in the private life or to come into the public office and start living on peoples expenses. Living a private life and taking care of personal expenses are decisions that many people have made over time, who do not want interference with their private lives.

Occupying public office and living on peoples money comes with a lot of responsibilities. Going into public office is a tradeoff of private life or secrecy to some extent, which many people occupying the public offices failed to understand. The scrutiny started even before they assume the office, by compulsory filling of the Asset Declaration Form by the Office of the Code of Conduct Bureau (CCB). It is expected that they declare all that they have and worth, which is expected to be investigated and validated. It is a signal that they are no longer living a private life, and they ought to know and behave as such

It is part of the price they have to pay for the powers and authority they have and exercise, such that, they decide who gets what, when, and how. So, there must be checks and balances to ensure that absolute power does not corrupt absolutely.

Nigerian government officials should know this and remember the oath of office they took to uphold the Constitution of the Federal Republic of Nigeria and other relevant laws that govern their conduct, the office, and mode of operations. Accountability mechanisms are put in place to guide the conduct of the public officers, which also give powers to the citizens to hold the people in the position of authority accountable. Even the government envisages a situation where the occupants of public offices can be lorded over, and do as they wish, which may not be the will of the people. That is exactly what brought the issues of rules, guidelines, policies, code of conduct and enactment of some laws to checkmate their excesses.

The laws such as the Freedom of Information Act, Fiscal Responsibility Act, Public Procurement Act, 2007, and Code of Conduct Bureau and Tribunal Act, 1991, among others, are meant to provide checks and balances in the way public officials behave, operate, and how government businesses are being managed by the people entrusted to. The grand norm of all the laid down procedures is the Constitution of the Federal Republic of Nigeria, 1999 as amended, upon which all other laws draw their powers, validity, and consistency. But it has been abused and disobeyed over time.

Thus, all government officials must subject themselves to the authority of these laws for effective and efficient management of the public resources that are entrusted to them for the people. It is pertinent to note that people have the right to ask and know how these resources are being managed on their behalf. Public officers should not be offended or get annoyed when citizens start asking relevant questions that concern the resources entrusted to them because the sovereignty belongs to the people. Public officials should be reminded that they are holding the office in the trust of the people because everybody cannot be there at the same time.

Omale Omachi Samuel, Special Duties Officer, Centre for Social Justice, Abuja

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Public office and accountability issues in Nigeria - Daily Trust

June 17, 2022

(Hanover, NH) Today, U.S. Senator Jeanne Shaheen (D-NH), a senior member of the Senate Foreign Relations Committee (SFRC), chair of the SFRC Subcommittee on Europe and Regional Security Cooperation, and a member of the bipartisan Ukraine Caucus, and U.S. Senator Rob Portman (R-OH), co-chair of the Senate Ukraine Caucus, member of the Senate Foreign Affairs Committee and a Dartmouth College alumnus, participated in a discussion hosted by Dartmouth on Russias invasion of Ukraine.

The event, entitled, The Defense of Ukraine: A Conversation with Senators Rob Portman and Jeanne Shaheen, was hosted by Professor Jason Barabas, who serves as Director of the Rockefeller Center for Public Policy and the Social Sciences at Dartmouth College, and moderated by Victoria Holt, Director of the John Sloan Dickey Center for International Understanding.

I appreciated Dartmouth hosting Senator Portman and me for a discussion today on the far-ranging consequences of Putins bloody further invasion of Ukraine. Senator Portman has been a steadfast partner of mine in the Senate, and together weve channeled bipartisan momentum to combat Russian aggression and aid Ukraine in its fight for survival. Ukrainians have shown remarkable resolve in the face of brutal atrocities committed by Russian forces, and they deserve all the support available to defend their people and land, said Shaheen. This war in Ukraine isnt just about Ukraine. Its about the U.S., Europe and the survival of democracies across the globe. We must meet this pivotal moment in history with unwavering resolve and ensure democracy and independence prevail over authoritarianism.

I was honored to be back at my alma mater today and thank Dartmouth for hosting Senator Shaheen and I as we discussed President Putins unjustified invasion of Ukraine. Throughout my time in the Senate, I have made it a priority to work across the aisle and find common ground with my colleagues from both parties because I believe that is the best way to get things done for the American people. The issue of Ukraine is yet one more example where there is broad bipartisan support in the Senate and House to support the people of Ukraine as they fight for freedom against a brutal regime that wants to take over their country. The United States must continue to stand on the side of freedom over tyranny and democracy and self-determination over authoritarianism and conquest, said Portman.

You can watch the full discussion here.

Shaheen and Portman have led bipartisan action in the Senate in support of Ukraine in response to Vladimir Putins unprovoked invasion of Ukraine, which threatens the stability and security of Eastern Europe and NATO allies. As a senior member of the Senate Armed Services Committee, Shaheen helped to secure $800 million in the fiscal year 2023 National Defense Authorization Act (NDAA) that passed the Committee earlier this week to advance additional aid to Ukraine and regional allies. In January, Shaheen and Portman led a bipartisan delegation to Ukraine, where they met with President Zelenskyy and members of his administration to discuss support efforts ahead of Russias unprovoked invasion. In February, Shaheen and Portman successfully led a bipartisan resolution reaffirming support for Ukraine amid increased Russian aggression. Shaheen also serves as co-chair of the Senate NATO Observer Group, which she re-established in 2018.

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Shaheen, Portman Participate in Discussion Hosted by Dartmouth on Russia's Unprovoked Invasion of Ukraine | US Senator Jeanne Shaheen of New Hampshire...

Commentary

As the House Select Committee to Investigate the Jan. 6 Attack on the United States Capitol starts public hearings, we must ask what motivates those on the committee.

Is the sole concern the ideals of the Declaration of Independence and the Constitution of the United States? Or is it to get media to attack and undermine political opponents?

It is indeed possible that infractions of law can be investigated without a carnival platform designed to mobilize media and national attention.

The public material of the committee already reeks of motivations other than seeking truth.

The committee has already announced on its website that the Jan. 6 incident was one of the darkest days of our democracy.

Really? Against a civil war where some three-quarters of a million Americans were killed, fighting over what American freedom is about, one incident of a few hours, where law enforcement finally prevailed, was one of our darkest days?

There are just 24 hours in any day, so time taken on one matter means attention not given to other matters.

If these members of Congress really cared about our principles of freedom and democracy, they wouldnt be ignoring every day other pressing matters in which the freedom of American citizens is blatantly violated.

Take, for example, that as the Jan. 6 investigation monopolizes media attention, on June 3 the Trustees of Medicare and Social Security issued their annual report.

Both systems are bankrupt and in dismal shape financially.

The cash shortfall of Medicare in 2021 was $409 billion. Projection is that Social Security will be out of adequate cash flow to meet obligations to retirees by 2035just 13 years from now.

The Trustees estimate that there are only adequate funds in Social Security to meet 80 percent of benefits in 2035. The payroll tax, now 12.4 percent, would have to be raised 26 percent in order to generate sufficient funds to meet those obligations.

In other words, today every working American age 55 and below who plans to collect Social Security benefits at age 67 is paying a payroll tax into a system that cannot provide the benefits promised.

Can you imagine a private insurance company sending a letter to policy holders saying that, in 13 years, they will only be able to meet 80 percent of the payments promised to policy holders?

The lawsuits would be flying.

Lets forget about the fiscal situation of the system for a minute and whether it is even worth saving this program. How about the issue of freedom that our members of Congress want us to believe they care about so much?

Take a young citizen, age 21, fresh with his or her new degree, entering the work force for the first time. Immediately, 12.4 percent of their paycheck is deducted into a system they involuntarily enter, in which there are inadequate funds to meet promised benefits.

Shouldnt this new young worker be able to say, No, thank you, I dont want to participate?

Even if the system were not broken, and benefits could be met, in our free country, shouldnt everyone be free to manage their own retirement?

According to the Committee to Unleash Prosperity, the average return of Social Security over the last 40 years was 1 percent. Over the same period, average return on stocks was 6 percent.

Back to this new young worker, by the calculations of the Committee to Unleash Prosperity, this single worker, if they earned the median national income and were able to invest 10 percent of their income into a diversified stock and bond portfolio over 40 years, instead of paying the payroll tax, could have annual income at retirement of $55,143 against $19,646 from Social Security.

So, hey, members of the Select Committee. Enough of pretending that you care about American freedom. How about wrapping up the carnival and getting down to the real challenges every American faces today?

Views expressed in this article are the opinions of the author and do not necessarily reflect the views of The Epoch Times.

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Star Parker is the founder and president of the Center for Urban Renewal and Education (CURE) and host of the new weekly news talk show Cure America with Star Parker.

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Congress Ignores Pressing National Business While It Obsesses on Jan. 6 - The Epoch Times

Download PDF Quick Facts

Ukraines economic freedom score is 54.1, making its economy the 130th freest in the 2022 Index. Ukraine is ranked 44th among 45 countries in the Europe region, and its overall score is below the regional and world averages.

Five years ago, the Ukrainian economy was gaining strength, but growth slowed in 2019, and the economy contracted in 2020. Growth resumed in 2021. During that half-decade, economic freedom has generally trended upward. Aided by score increases in labor freedom and monetary freedom, Ukraine has recorded an impressive 6.0-point overall gain of economic freedom since 2017 but is still in the middle ranks of the Mostly Unfree countries. Fiscal health is somewhat positive, but investment freedom, financial freedom, and rule of law exhibit weaknesses.

IMPACT OF COVID-19: As of December 1, 2021, 91,860 deaths had been attributed to the pandemic in Ukraine, and the governments response to the crisis ranked 40th among the countries included in this Index in terms of its stringency. The economy contracted by 4.2 percent in 2020.

Long known as the Breadbasket of Europe because of its fertile black soil, Ukraine is located in Eastern Europe north of the Black Sea. In the eight years since the Maidan revolution, Ukraines political landscape has been transformed. Rival businesspolitical networks continue to exercise significant influence, but a generational change is in progress. Actor and comedian Volodymyr Zelenskyy, a political newcomer, won the April 2019 presidential election, and his party won an absolute majority in July 2019 parliamentary elections. Russias illegal annexation of the Crimean Peninsula and destabilization of the eastern Donbas region continue to damage the Ukrainian economy, which relies heavily on the production of wheat and exports of industrial and energy products.

Property rights and secured interests are protected by law, and the recording system is generally reliable, but enforcement is undermined by corrupt courts. In 2021, in an effort to unleash productivity and investment, the government ended a 20-year moratorium on the sale of farmland. The judiciarys susceptibility to political pressure, corruption, and bribery weakens public confidence. Government integrity remains severely compromised.

The top individual income tax rate is 20 percent, and the top corporate tax rate is 18 percent. Other taxes include value-added and property taxes. The overall tax burden equals 19.2 percent of total domestic income. Government spending has amounted to 43.0 percent of total output (GDP) over the past three years, and budget deficits have averaged 3.5 percent of GDP. Public debt is equivalent to 60.7 percent of GDP.

Regulatory decisions are characterized by a high degree of arbitrariness and favoritism. A change has been made to speed up the review and issuance of patents. There is a skilled computer software workforce. Most state-owned enterprises rely on government subsidies to function and cannot compete directly with private firms. Subsidies for natural gas were reimplemented in 2021.

Ukraine has 20 preferential trade agreements in force. The trade-weighted average tariff rate is 3.2 percent, and 150 nontariff measures are in effect. Despite progress, lingering bureaucracy deters much-needed growth in private investment. Nonperforming loans continue to be a drag on the banking system. The capital markets lack of development limits financing options.

Originally posted here:

Ukraine Economy: Population, GDP, Inflation, Business, Trade, FDI ...

Back in the 1970s, macro-economic management in the advanced economies faced a novel challenge. Inflation and unemployment, instead of moving in opposite directions through the ups and downs of the business cycle, went in the same direction.

The high unemployment reflected slow economic growth, or stagnation. The combi-term invented to describe this phenomenon was stagflation. That word is in vogue again now, after half a century, as economies confront the simultaneous prospect of low-to-zero growth and high inflation.

Economists in the 1970s devised a concept to describe what people were experiencing under stagflation: A misery index, which basically added up the rate of consumer inflation and the rate of unemployment. If one were to construct such an index today, what would it show?

To no ones surprise, misery is highest in the countries known for economic mismanagement and/or congenital problems: Turkey, Argentina, South Africa. After that come two of the Brics economies (war-affected Russia and Brazil), keeping company with Pakistan and Egypt. Next comes India. Not very flattering, for sure, but the leading European economies and the US are not far behind.

Two modifications were made to the misery index. One was to add the prevailing rate of interest. That makes the picture much worse for poorly-placed countries like Turkey, Brazil, Russia, and Pakistan since high inflation usually brings with it high interest rates. But it also opens up the misery gap between India and the wealthy countries, since these latter typically have much lower rates of interest, in line with their traditional low rates of inflation.

So far, it doesnt look great for India, which ranks more than halfway down a list of 20 economies chosen to represent the major economies in each region.

The second modification added per capita income growth rates since these reduce economic hardship. This helps India (which in 2022 is expected to remain the fastest-growing large economy) to improve its score but not its rank, though it helps to level the ground vis-a-vis the advanced economies which usually have low rates of growth, even after adjusting for stagnant or declining population numbers. With all four factors (inflation, unemployment, interest rates, and income growth) taken into account, India remains in 12th position in our list of 20.

A good complement to the modified misery index, which basically looks at how people are faring, would be an indicator of the stability of economies in turbulent times, such as now. Back in 2013, the runaway growth of Indias twin deficits (fiscal and current accounts) led to its being listed as one of a fragile five.

Also Read: Corporate India has never had it so good, but under-consumption continues to undermine economy

How does India do today? The big surprise is that it does better than both the US and the UK! On the other hand, it does worse than almost all the others, barring Pakistan and Egypt. As for warring Russia, it does surprisingly well because of its large trade surplus as do Germany and the Netherlands, for the same reason.

What about the second- and third-largest economies in the world, China and Japan? Based on their scores, both countries appear to be models of economic management. They score the best on the misery index, in its original form and with modifications, and they do better than average on the twin deficits, though it is worth noting that Chinas growth rate has come down to normal levels (around 5 per cent) while its fiscal deficit has grown. The signs of stress are beginning to show.

Such measurements capture only part of the full reality of lived economic experience. One could therefore add other measures, like absolute income levels and poverty (since that determines ones capacity to deal with difficult times), and also inequality.

The greater the inequality, the less is the chance of inter-generational mobility, something that is captured through yet another measurement construct appropriately dubbed the Great Gatsby Curve which was thought up by an economist on US President Barack Obamas team. To the extent that India does not do well on these measurements either, the country has a lot of food for thought as it prepares to celebrate the 75th anniversary of its freedom from colonial rule.

By special arrangement with Business Standard

Also Read: For India, economic disorder is a reality to be reckoned with, but it also presents an opportunity

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How would India fare on a modified misery index? Better than US & UK, worse than most others - ThePrint

Ex chief economic adviser Arvind Subramanian has called for institutional freedom

As the Reserve Bank of India (RBI) raised its outlook for inflation to 6.7 per cent for the current fiscal, up from its previous projection of 5.7 per cent, former chief economic adviser Arvind Subramanian said that the central bank has reacted late to rising prices.

In a freewheeling chat with NDTV over a host of issues ranging from global economy, importance of social harmony, India's investment climate as well as on the need for institutional freedom, Mr Subramanian, while reacting to RBI's outlook on inflation, expressed disappointment that though prices have been rising for almost three years, it was late in taking measures to check them, which showed a certain loss of institutional independence.

What has been disappointing is that it is not just that inflation has been high and RBI has been late to react to it, but it smacks of certain loss of institutional independence. Mr Subramanian said.

The former chief economic adviser said that RBI has been keeping the upper ceiling for inflation at 6 per cent but its target is 4 per cent, therefore much more action should have been taken. In economic parlance, RBI is like Supreme Court. We don't want conflict among these institutions, but we don't want RBI to become an extension of the Government.

When inflation goes up, RBI is meant to raise rates to control it. But it has not done it because Government's interest burden goes up. We call it fiscal dominance, which means that fiscal situation dominates monetary policy. So RBI is trying to do what Government wants it to do, rather than bringing down inflation, Mr Subramanian explained.

Emphasising on the importance of institutional freedom, he said that if institutions are not going to be robust as they should be, then it takes a toll on broader investment climate, therefore the question as to why foreign investors are choosing other nations like Vietnam etc (over India), becomes relevant.

On being asked whether rate hikes which are impacting EMIs and loans and putting pressure on the common man are going to continue, Mr Subramanian said that though RBI is mandated to bring inflation down to 4 per cent levels, it has kept the forecast for this fiscal at nearly 7 per cent (6.7 per cent).

Some global prices may cool off but RBI has to show that it has the desire and will as well as independence to achieve that (control inflation), he said, while adding at the same time that rate hikes are likely to continue for some time, depending on external situations.

Quizzed whether India can be an investment destination in the wake of China's economic slowdown, Mr Subramanian said that India's Atmanirbhar policy is proving to be a deterrent in this.

We have Atmanirbharta policy, so India is not really an attractive place as we have become protectionist and have raised tariffs. So this policy is a problem in attracting investment which can service the global market, the former chief economic adviser said.

Mr Subramanian also blamed arbitrariness in investment policy as another deterrent in India becoming an investment hub.

To be fair to the Government, it has started negotiating free trade agreements (FTAs). But there is tension between such pacts and Atmanirbharta We will have to abandon this policy as FTAs require doing away with trade barriers, the economist noted.

He said that there was too much arbitrariness in investment policy as some companies are favoured over others, which has turned away foreign investors.

We need independent institutions, steady rules and social harmony as well as better Centre-State relations, to attract investors. For the moment we are missing that, Mr Subramanian pointed out.

Underlining the significance of cooperative federalism, which he said was visible when the Centre had framed the Goods and Services Tax (GST) regime in consultation with states, Mr Subramanian said that spirit of consultation was missing while framing the farm laws.

However, he added that Centre alone was not to be blamed, as states too were guilty of indulging in populism or rather imitative populism.

Here, the Centre has to take lead and create an atmosphere of trust. These are challenging times and both Centre and states have to come together, Mr Subramanian emphasised.

Highlighting the significance of social harmony in creating a conducive investment environment, the economist said when you have social conflict for a long time, then it takes a toll on investment. Many countries have tried to suppress such conflicts but it catches up, as can be seen in Sri Lanka.

When conflicts become weaponised (like in Ukraine), it is the people who aremost vulnerable, he said.

In such a conflict we forget that if we have so many Indians working abroad whoare vulnerable to weaponised interdependence. We have Indians in Gulf countries and overseas governments might get annoyed if social harmony is disturbed in India. These are flammable things and may happen anytime and their repercussions could be massive, Mr Subramanian cautioned.

So we need social harmony for ourselves and for maintaining stable relations with other nations in order to attract investmentTherefore social harmony and peace are very important, he emphasised.

On the global economic scenario and its impact on Indian economy as well as inflation, Mr Subramanian said that currently the spectre of global stagflation is being seen right now.

World Bank has revised the forecast for global economy and for it, anything less than 2 per cent is considered a recession. We will not only have high international prices of fuel and fertiliser, but also there will be a global slowdown. This will be a double whammy for India, as we are not just net importer of oil but will also face price shocks from global economy. At the same time, exports willfall. So both on growth as well as on inflation side, there are going to be shocks for India, he summed up.

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"Don't Want RBI To Become Extension Of Government": Ex CEA Arvind Subramanian - NDTV Profit