Chapter 714: Chapter 402, Is This What You Call the Planetary Defense Army?
A fiscal surplus exceeding five billion a year, this is certainly a number that Tianma Star Sector once could not imagine.
Relative to other surrounding Star Sectors, Tianma Star Sector was indeed wealthy, but precisely because of this, it was burdened with a significant amount of Imperial Tax. Like Korolya, which had to rely on a population tax to cover half of its four billion Imperial Tax last year; Fatchess Tri-Star would be at death’s door just by raising its development level to 3; Flying Wing Star was not bad, but its highly developed shipbuilding industry had to hand over practically all the ships it produced just to bear the tax burden of a development level of 5…
However, after the Alliance Government took full control of all the planets in the Tianma Star Sector up to the present, four years have passed, and not only can it satisfy the Imperial Tax, but it can also have a surplus of five billion. The key aspect is that the living standards of the people in the entire Star Sector did not decline, but instead, there was an improvement.
There may not be much change in the living standards of people on planets like Fatchess Tri-Star, Flying Wing Star, and Hongjian Star; but in Korolya, on Rage Owl Star, and on Heijian Star, the changes were significant.
The reason for achieving this, on the one hand, was that the Imperial Tax, once set four years ago, would not change for ten years, and during this time, the planets under the Alliance’s rule were rapidly developing.
Of course, just relying on the fruits of development was not enough.
…
The primary reason lies in the Alliance’s system, which drastically reduced the existence of capitalists, bureaucrats, and other rent-seeking classes. They still existed within the Alliance’s system and played a role, but the super profits they could take were greatly reduced, transitioning to a method of gaining rewards based on rank. They could improve ranks more easily than ordinary workers, but compared to their former identity as exploiters, it was much less.
Most of the value created by workers was consumed by the workers themselves, which is the fundamental reason for the significant improvement in the living standards of the people under the Alliance’s rule; the Alliance Government took a direct part of the remaining proceeds; the rent-seeking classes still had a bit of income, after all, the Alliance had not yet abolished all private economies, but on the whole, it was definitely a significant reduction.
With both development and the elimination of the middle layer, the Alliance’s management of society’s middle and grassroots levels, and production became more direct, which under a dual effect, led to a fiscal surplus of five billion.
And these fiscal surpluses, of course, the Alliance would not hoard like misers.
They are to be used in the budget allocation, for reinvestment in production, which accounts for a large portion of the budget.
The second largest part is used for military expenses, including military expansion and maintenance.
The third largest, used for the expansion of government expenditure. Normal government expenditures are not included here but are accounted for as costs. This refers to the expenses needed to establish more government agencies. Besides the costs of establishing more agencies, the corresponding maintenance costs naturally increase, but these expenses are included in the maintenance costs.
These three are economic development, military construction, and political construction.
The five billion will all be spent, nothing good is left to save.
Spending more money now is for the sake of having more income in the future.
And in two years’ time, when Korolya starts paying taxes for the first time and loses its 4 billion tax exemption, Gu Hang hopes that at that time, the Alliance will still have a fiscal surplus of five billion.
This means that in the next two years, the Alliance’s income surplus needs to increase by another 40 billion. On the condition of ensuring the growth of the people’s consumption, the Alliance must increase from the current output value of 1123 billion to at least around 1300 billion, requiring a 20% economic growth rate over two years.
It’s not very difficult.
The ones with the greatest potential are Rage Owl Star and Korolya.
Gu Hang hoped that in two years, Rage Owl Star would have a population of forty billion—mainly through migration from Korolya. With this scale, it would be able to better exert the power of Rage Owl Star’s transformation into an industrial planet, as well as better utilize the value of the Rage Owl Star Shipyard.
As for Korolya itself, it is expected that after a total of six years of population migration up to two years in the future, in addition to boosting Rage Owl Star’s population to 40 billion, it would also be able to boost Heijian Star’s population to 30 billion—which would be the limit for Heijian Star. It is estimated that by then, including the new additions, Korolya will still have a population of around 31 billion.
With 9 billion fewer people, the pressure on Nest Capital will be greatly reduced; and as the reform deepens, the development potential brought by the population will also be realized.
Gu Hang is counting on these two planets as the strongest economic engines to really bring about two years of 20% growth.
That is also Gu Hang’s demand of the Alliance Government.
Lady Ossina, who had been promoted to A4 rank, was so worried that she was pulling her hair out. She had thought that as the Alliance’s situation improved, she would be able to catch her breath and have a bit more time to rest. However, the two-year plan targets set by the Governor left her no choice but to continue worrying.
It’s not that the targets can’t be reached—the Governor is not setting arbitrary targets. But the fact that it hinges on the prerequisite of hard effort compelled her to keep striving.
She had to take charge of her Premier’s office staff, rally the governments of various planets, and rally the high officials of the Alliance’s ministries and committees, to fight hard.
…
After finishing reviewing the tax-related documents and reports and signing her name, Gu Hang turned his attention to military construction.
Actually, his trip to Korolya was for this very purpose.
A big chunk of the Alliance’s fiscal surplus was allocated to military construction.