Federal Economic Recovery Plan

The Federal Economic Recovery Plan, or the Economic Prosperity Act, was a policy paper and budget statement published by Marissa Santini as President of the Government and her Council of State, in Nouvelle Alexandrie, in XIII.1731 AN. It was an evolution of the budgetary decisions of the General Appropriations and Taxation Act, 1730, and the growing cost of living crisis and inflation.

History

In the aftermath of the passing of the vital Federal National Plans, the Council of State, spearheaded by Marissa Santini and Trade and Labor Secretaries Ruqá Ticllacuri Ccolque and Urbano Buccho, respectively, opted for the creation of a dedicated economic recovery plan in the face of rising inflation, housing prices, and growing cost of living problems. Their aim was to achieve 3% sustainable annual growth over the remainder of the parliamentary period, and to substantively reduce the cost of living for the most vulnerable.

The plan was devised by the Department of Treasury, Trade and Industry, National Mobilisation, and Labor. They were aided by the Office of the President's Department of National Affairs.

Contents of the Plan

The Plan was divided into four parts:

1. Economic Recovery
2. Cost of Living
3. Social Safety Nets
4. Fiscal Responsibility

Economic Recovery

This chapter outlines a roadmap for reigniting economic growth. It emphasizes strategic investments to create a dynamic and competitive economy built for the future.

• Strategy 1: Invest in Innovation and Infrastructure
  • The NovaSpark Initiative is a €2 billion program for R&D investment into clean energy, focusing on solar, wind, and geothermal technologies.
  • The Technopolis Tax Credit provided a 5% tax credit for businesses investing in R&D exceeding 5% of their annual profits.
  • The HyperConnect Program establishes new public-private partnerships for infrastructure development, leveraging private sector expertise and financing, ensuring transparency and local participation.
  • The National Re-Life Initiative will encourage the repair, reuse, and recycling of products and materials. This can involve supporting repair cafes, establishing buy-back programs for electronics, and promoting eco-friendly product design by businesses.
• Strategy 2: Support Small and Medium Enterprises (SMEs)
  • The One-Stop Business Registration Initiative simplifies business registration processes by creating a one-stop online portal.
  • The SME Loan Guarantee Program guarantees 75% of loan principal for SMEs partnering with local banks, providing access to over €1 billion in affordable loans annually.
  • The Green Seed Loan Program provides a loan guarantee of 15% for SMEs investing in green technologies and sustainable practices.
  • The MentorMatch Program creates an online platform connecting established entrepreneurs with aspiring business owners for mentorship and guidance.
• Strategy 3: Foster a Skilled Workforce
  • The Future Skills Program invests over €1 billion annually in vocational training programs aligned with industry needs, focusing on emerging technologies, advanced manufacturing, and digital skills.
  • The National Scholars Program offers full scholarships and grants covering tuition and living expenses for 10,000 students pursuing STEM degrees and high-demand vocations annually.
  • The Reskilling Revolution Initiative provides €500 million annually for retraining programs for displaced workers, equipping them with in-demand skills for new job opportunities.
  • The FastTrack Visa Program streamlines immigration processes for skilled workers in critical sectors, with a dedicated online application system and expedited processing.
• Strategy 4: Support Entrepreneurship and Startups
  • The Startup Nation Program provides business incubators and co-working spaces in major cities to provide start-ups with mentorship, networking opportunities, and access to seed funding.
  • The National Innovation Awards recognises and rewards - financially and through technical assistance - groundbreaking innovations in various sectors, encouraging a culture of entrepreneurship and technological advancement.
  • The National Co-op Network will launch a platform connecting individuals interested in forming worker co-operatives with resources, training, and legal guidance. Promote worker ownership models as a viable alternative to traditional business structures.
• Strategy 5: Promote Trade and Investment
  • The National Trade Missions Initiative will organize trade missions to key international markets to connect New Alexandrian businesses with potential foreign investors and partners.
  • The National Sharing Platform will create a platform that facilitates peer-to-peer sharing of resources like tools, equipment, and even underutilized spaces. This can create income opportunities and reduce costs for citizens.
  • The National Social Innovation Initiative will support non-profit organizations and social enterprises that develop innovative solutions to social and environmental challenges.
• Strategy 6: Support Green Businesses and Sustainable Practices
  • The Green Business Certification Program offers tax breaks and financial incentives to businesses adopting sustainable practices, including renewable energy use, waste reduction, and environmentally friendly production processes.
  • The Green Investment Fund provides loans and grants for businesses developing and implementing clean technologies, accelerating the transition to a sustainable economy.
  • The Consumer Green Choice Labelling System works to inform consumers about environmentally friendly products and services, encouraging responsible consumer choices.
  • The Green Workforce Program will develop and offer specialized training programs to equip the workforce with the skills needed for jobs in the green economy, such as renewable energy installation, energy efficiency retrofitting, and sustainable agriculture.
  • The Green Curriculum Program will partner with green businesses and industry leaders to co-create the curriculum and internship opportunities for program participants, ensuring its relevance to current job market demands.

Cost of Living

This chapter tackles the rising cost of living, presenting a multi-pronged approach. It delves into strategies to ensure a decent standard of living for all citizens.

• Strategy 1: Address Housing Affordability
  • The Homes for All Program invests to increase the supply of affordable housing units by 200,000 within five years through zoning reforms and government-backed construction projects focusing on energy-efficient apartments and mixed-income communities.
  • The Rent Control Program will implement temporary rent control measures in areas with a vacancy rate below 5%, triggering annual adjustments based on the cost-of-living index.
  • The Fair Rent Partnership Initiative will offer tax breaks of up to 10% for landlords offering below-market rents to low- and middle-income families for a minimum lease term.
  • The First Home Down Payment Grant Scheme will provide grants of up to €20,000 for first-time homebuyers to cover down payments on their primary residence, with income and location eligibility criteria.
• Strategy 2: Regulate Essential Goods and Services
  • The Fair Price Watch Initiative will strengthen price controls on essential goods like food and medication, collaborating with consumer protection agencies and establishing price transparency measures.
  • The Green Energy Initiative will invest annually in renewable micro-generation like solar panels and geothermal heat pumps, reducing reliance on fossil fuels and mitigating energy price fluctuations.
  • The EnergyWise Program will offer rebates and tax credits for citizens upgrading to energy-efficient appliances and home insulation, lowering their utility bills.
  • The Fair Energy Market Scheme will strengthen public oversight and competition within the energy sector to prevent price gouging.
• Strategy 3: Promote Fair Wages and Worker Protections
  • The Fair Wage Act will be introduced to increase the national minimum wage to a livable standard, adjusting it annually based on the cost-of-living index.
  • The Living Wage Advocacy Scheme will work with large companies and anchor institutions to adopt a living wage policy that goes beyond the national minimum wage, ensuring a decent standard of living for their employees.
  • The Workers' Rights Charter will enhance legal protections against wage theft, guarantee paid sick leave, and enforce fair working conditions.
  • The Empower your Workplace will encourage unionization, by providing technical assistance and covering registration fees and startup costs.
• Strategy 4: Address Transportation Costs
  • The National Move Initiative will provide grants and reduced-fee tickets in collaboration with public transport providers, focusing on improving connectivity and affordability in urban and rural areas.
  • Congestion Charge Zones will be implemented in areas with high traffic density to discourage private vehicle use and encourage carpooling or public transportation during peak hours. Revenue generated will be directed towards public transit improvements.
  • The Electric Vehicle Grant Scheme will provide subsidies up to €4,000 for citizens purchasing electric vehicles, promoting sustainable transportation choices.
• Strategy 5: Promote Fair Competition and Consumer Protection
  • The National Competition Commission will be created to investigate and address anti-competitive practices among businesses, ensuring fair market pricing and consumer choice.
  • The Price Comparison App will be implemented for citizens to easily compare prices of essential goods and services across different stores and online retailers, promoting informed consumer decisions.
  • The Consumer Bill of Rights Campaign will be launched to educate citizens about their rights and empower them to challenge unfair pricing practices or misleading advertising.
• Strategy 6: Address the Digital Divide
  • The Connect All Program will invest in expanding access to high-speed internet across Nouvelle Alexandrie, particularly in rural and underserved communities.
  • The Broadband Access Initiative will provide subsidies for low-income families to access broadband internet services, ensuring digital inclusion and eliminating barriers to online resources.
  • The Digital Literacy Training Program will equip citizens with the skills to navigate online services and technologies confidently, improving their access to online education, job opportunities, and government services.

Social Safety Nets

This chapter prioritizes social safety nets. These measures aim to ensure a strong social safety net that protects citizens during challenging times.

• Strategy 1: Strengthen Unemployment Benefits
  • The Bridge to Opportunity Program will extend the duration of unemployment benefits to 26 weeks, with the option for an additional 13 weeks for those actively participating in job training programs.
  • The Fair Benefits Scheme will tie unemployment benefits to the cost of living through annual adjustments based on the inflation rate.
• Strategy 2: Expand Access to Affordable Healthcare
  • The National Insurance Program will provide government-backed insurance for citizens, reducing co-pays and deductibles for essential medical services, and giving access to more than €4 billion annually in health insurance.
  • The Single-Payer Healthcare Program will establish a single-payer healthcare system within a five-year timeframe, aiming for universal access to affordable healthcare.
  • The Preventative Care Program will invest in preventative care programs, including mental health initiatives, routine checkups, and health education campaigns, promoting early detection and reducing reliance on expensive treatments.
  • The Medicine Discount Program will negotiate lower drug prices with pharmaceutical companies, offering citizens substantial savings on essential medications.
• Strategy 3: Support Vulnerable Populations
  • The Stronger Together Initiative will increase benefits for low-income families, retirees, and people with disabilities, by:
    • Raising the minimum benefit amount for social security programs by 10%.
    • Expanding eligibility for subsidized childcare and eldercare services.
  • The Essentials Card Initiative will provide low-income families, retirees, and people with disabilities with a discount card for essential goods and services like groceries, transportation, and utilities. This card will be linked to income eligibility.
  • The Stable Housing Initiative will invest in the creation of social housing, creating and maintaining safe and affordable housing units for vulnerable populations.
• Strategy 4: Invest in Education and Training
  • The National Upskilling Initiative will offer free online and in-person training programs for low-income adults, focusing on digital literacy, essential job skills, and entrepreneurship training to enhance their employability.
  • The National Early Stars will create a network of high-quality childcare facilities with subsidized fees for low- and middle-income families. This will support parents' return to work and early childhood development.
  • The Early Childhood Support Program will provide funding for early childhood education programs like preschool, ensuring all children have access to quality education from a young age, fostering better developmental outcomes and future career prospects.
  • The Second Chance Scholarships Program will offer scholarships and financial assistance for low-income adults pursuing higher education or vocational training, promoting lifelong learning and career advancement.
• Strategy 5: Address Food Insecurity
  • The Community Harvest Program will provide grants to local communities to establish community gardens and urban agriculture initiatives, increasing access to fresh and affordable produce.
  • The National Nutrition Assistance Program will provide low-income families with grants for groceries, ensuring they have access to nutritious food.
  • The Food Rescue Program will redirect surplus food nearing expiry to food banks and community kitchens, reducing food waste and hunger.
  • The Community Supported Agriculture Program will support the development of CSA programs that connect consumers directly with local farmers, ensuring access to fresh, seasonal, and locally produced food at a fair price.
• Strategy 6: Support Mental Health and Wellbeing
  • The National Mental Health Program will invest to expand access to mental health services by increasing funding for public mental health clinics and training more mental health professionals.
  • The National Mental Health Awareness Campaign will provide media campaigning and educational programs to reduce stigma and encourage help-seeking behavior.
  • The Workplace Wellness Initiative will encourage companies to offer employee assistance programs with access to mental health resources and stress management workshops.

Fiscal Responsibility

This chapter focuses on responsible fiscal management. These measures aim to ensure the long-term fiscal health of the government and responsible use of taxpayer money.

• Strategy 1: Promote Sustainable Economic Growth
  • The National Diversification Program will provide grants and investment to emerging industries to grow beyond traditional sectors, focusing on green technologies, advanced manufacturing, and knowledge-based industries.
  • The Export Support Program will provide technical aid and logistical support to companies exporting goods and services, fostering new export markets and reducing reliance on volatile commodity prices.
• Strategy 2: Prioritize Efficiency in Government Spending
  • The Streamlining Operation will conduct annual audits across all government departments to identify and eliminate wasteful spending. This will include a review of procurement processes and streamlining bureaucratic procedures.
  • The Performance Based Budgeting Program will allocate government funding based on pre-determined performance metrics for each program, ensuring taxpayer dollars are used effectively and deliver measurable results.
• Strategy 3: Diversify Tax Revenue Streams
  • The Green Tax Shift will gradually reduce taxes on income and payroll while increasing environmental taxes on carbon emissions and pollutive industries. Revenue generated will be directed towards clean energy initiatives and social safety net programs.
  • A Wealth Tax will be imposed on the top 1% of earners to generate additional revenue without placing a burden on middle-class families.
• Strategy 4: Combat Tax Evasion and Fraud
  • The Tax Infrastructure Modernization Program will invest in modernizing tax collection systems and IT infrastructure to improve efficiency and identify tax evasion loopholes.
  • The Evasion and Fraud Combating Scheme will increase penalties for tax evasion and fraud, deterring non-compliant behavior.
  • The International Tax Agreement will establish international cooperation agreements with other countries to combat cross-border tax evasion.
• Strategy 5: Promote Transparency and Public Accountability
  • The Public Access Initiative will implement online portals for public access to government budgets, spending data, and performance reports, fostering transparency and citizen oversight.
  • The Budget Public Participation Initiative will encourage public participation in budget discussions and policy development through open forums and citizen advisory boards.
  • The Independent Auditing Initiative will strengthen independent auditing institutions and whistleblower protection measures to ensure accountability and prevent corruption.
• Strategy 6: Foster Long-Term Fiscal Sustainability
  • The Fiscal Responsibility Initiative will establish a non-partisan commission to conduct regular assessments of the government's long-term fiscal health and recommend sustainable spending policies.
  • The Cost-Benefit Analysis Program will conduct regular cost-benefit analyses for major government projects to ensure value for money and prioritize investments with the highest return on public investment.
• Strategy 7: Promote Financial Literacy
  • The Money Smarts Program will establish educational programs to equip citizens with personal finance management skills, including budgeting, saving for retirement, and responsible credit use.

See also

• Federal National Plans
• General Appropriations and Taxation Act, 1730