The Parliamentary Budget (not to be mistaken by the Work-Standard “State Budget”) operates within the shared Neoliberal paradigm of Production for Profit and Production for Utility. The Parliamentary Budget not only refers to the Quantity of Kapital that a Parliament could allocate to its own governmental and economic organizations, but also the Quantity of Schuld that it incurs on itself as part of its daily operations running a Liberal Capitalist regime.

The concept of Kapital in the Parliamentary Budget takes on a distinctive meaning, as the Kapital that a Parliament is capable of accumulating for its own purposes is through the usual methods allowed in Production for Profit and Production for Utility: impose taxation policies, deficit spending or “debt servicing,” Interest Rates, adjustments to the “Money Supply.” Of the four methods, one of them is directly impacted by the Quantity of Kapital vis-à-vis directly borrowing from the Central Bank and the issuances of an LCFI (Liberal Capitalist Financial Instrument) known as “Government Bonds.” Another closely affects the Quantity of Schuld by running budgetary deficits and spending more than what Parliament has.

Going back to the Double-Entry Account Bookkeeping System and the four accounting techniques outlined earlier in Section One, there are at least three notable formats employed by Liberal Capitalist to determine the Quantities of Kapital and Schuld for a Parliamentary Budget. They are applicable to both Production for Profit and Production for Utility.  Those three are the “Line-Item Budget,” the “Program Budget,” and the “Performance Budget.”

• The Line-Item Budget will provide information on how many Quantities of Kapital will be required by government organizations, including how their actual expenditures in one year and estimated expenditures over the next year or more. Individual items on a Line-Item Budget pertain to the Kapital needed to pay to pay for the continued operations of government organizations.
• The Program Budget describes where the Quantities of Kapital should be allocated toward. The individual items on record are the programs run and operated by government organizations. Short descriptions of the program’s mission and the activities associated with it are also outlined in order to justify further funding from the Parliament.
• The Performance Budget documents the intended purposes of a government organization’s program and its activities. The individual items on record include the known expenses of running the program in the current year, how much Kapital would be ‘recommended’ in the next year, and the projected expenses in the next two years or more. It also runs a tally of how many times a program’s goals were met within a given year.

Each subvariant of the Parliamentary Budget has its own purposes for accountants. The Line-Item Budget is used to allocate Kapital toward the general needs of a government organization. The Program Budget facilitates Kapital allocations to the programs of government organizations. And the Performance Budget denotes the outputs and outcomes of government organizations meeting the goals of their active programs.

Regardless of how Parliament obtained its Kapital, be it through fiscal or monetary policies, the Parliamentary Budget will be filled with Kapital. If not, Schuld will take its place in the form of a budgetary deficit. When Kapital does fill the Parliamentary Budget, the Parliament proceeds to allocate it toward a series of Funds that it controls. Two of them are identified as the “Fiduciary Fund” and the “Proprietary Fund.” A third Fund, referred to in this Treatise as the “Parliament Fund,” is a more generalized set of Funds that Parliament maintains for its everyday purposes. I will be discussing all three Funds over the course of the next three Entries.    

Categories: Work-Standard Accounting Practices

Tags: Accounting, Economics, Finance, Philosophy, Politics, Psychology, Socialist Finance, Third Place, Work-Standard