Chapter 25: Financial Crisis
The week Arthur had set aside was not only for the newly elected cabinet members to familiarize themselves with their positions, but also for them to access and deeply understand the country's data and reports.
Among the eleven cabinet members, aside from the six former governors, many came from lower ranks of government.
They had never had clearance to view nationwide records, so their understanding of Australia's overall situation was limited.
Throwing them straight into cabinet duties would have been like setting flies loose in a dark room—confused and directionless.
So, it made more sense to give them a short adjustment period. This would allow the cabinet to function more efficiently.
In the blink of an eye, the week passed, and the day of the first full cabinet meeting arrived.
The cabinet members had all resigned from their previous posts well in advance.
Due to differing timelines in the state elections, the governorships still had to be held temporarily until successors were chosen.
Inside the now-familiar national administration building and its main conference room, the number of attendees had dropped drastically—from 199 Lower House members to just 12 cabinet officials.
Seated at the central chair, Arthur looked around at the expectant faces and said with a smile,
"Gentlemen, I trust you've gained a solid understanding of Australia's current situation after this week.
Now, we can officially begin discussing our national development plan—and set this country on its path to rise."
"Let's begin with a round of updates. Share the situation in your respective ministries and any ideas you have.
Speak freely—if it benefits the nation, I want it brought forward," Arthur encouraged.
Even though Arthur had the insight of a modern soul and a clear grasp of national strategy,
as the saying goes: many hands make light work.
Those who made it into the cabinet likely had real talent, and some of their ideas might surprise even Arthur.
"Let's start with the Treasury. What's our current financial status?
How much usable funding does the government still have?" Arthur asked, turning to Roger Joseph Ebert, the Minister of Treasury.
As the saying goes: before marching an army, stock the granaries.
In national development, no plan can go ahead without sufficient funding.
"Your Grace, not very ideal," Roger Joseph Ebert shook his head with regret.
"Though unifying the six colonies into one country will certainly boost economic activity and industry,
as of now, the government's funds are limited—barely enough to maintain operations."
The unification had come too recently.
While economic momentum was beginning to build, meaningful increases in revenue would take years to materialize.
And to make matters worse, Arthur had implemented massive tax cuts, significantly reducing government income.
"How much is left in the treasury right now?" Arthur asked, frowning.
Under the reformed system, the states collected taxes and forwarded the majority to the central government while keeping a small portion.
So far, taxes had only been collected once—and with Arthur's generous reductions, the total tax revenue was barely over £1 million.
Including other minor income sources, the total government revenue was under £3 million.
After expenses, the government's usable funds were below £2 million.
"Your Grace, after deducting all current expenditures, the treasury holds just over £1.9 million," Roger reported.
That amount remained only because the temporary government had yet to launch any major initiatives.
Most spending had gone to salaries for government employees.
But in terms of national development, less than £2 million was a drop in the ocean.
Upon hearing Roger's report, the cabinet was visibly shaken.
Many had already started crafting plans for their departments—Roger's figures were a cold bucket of water extinguishing their hopes before they even began.
"Minister Roger, is this true?
If we've only got that little in development funds, we can't even afford equipment," said Prime Minister Evan, visibly shocked.
During his time as Premier of New South Wales, the state alone collected over £2 million annually.
How could the unified government have less?
"It's true. Based on our current tax cycle, we won't see another significant influx of revenue until October," Roger confirmed with a nod.
Everyone turned their eyes to Arthur.
After all, the main reason for this shortfall was his tax cuts.
And so, the message was clear: the government is short on money—Your Grace, how do you intend to fix it?
"Alright, here's what we'll do," Arthur announced decisively.
"In the name of the royal family, I will issue an interest-free loan of £100 million to the government.
Additionally, I'll lend £50 million worth of industrial equipment at market value.
This way, the government won't need to import expensive equipment from Europe, and we'll have the capital needed for development."
Just like that, Arthur ended the awkward silence.
With fresh funding secured, morale soared.
Ministers now had hope that their projects might actually come to life.
"Industry is our top priority. Let's hear from the Ministry of Industry," Arthur said, nodding to Pierre Silvio Berlusconi.
Pierre Silvio Berlusconi stood confidently and addressed the room,
"Your Grace, our nation's industrial development is severely lacking.
Whether it's basic infrastructure or advanced technology, we are sorely behind.
My recommendation is that we focus our current efforts on building foundational industries.
Thanks to the mineral-rich regions in the west, we can establish a large industrial base.
Once that's in place, we can shift our focus to high-tech industries and begin closing the gap with Europe."
Indeed, Australia's problem was that its foundation was too weak.
You can't become an industrial power overnight.
Only by developing infrastructure and core industries could Australia later concentrate its resources on advanced technology—and truly catch up with the West.
(End of Chapter)
Thank you for the support, friends. If you want to read more chapters in advance, go to my Patreon.
Read 30 Chapters In Advance: patreon.com/Kira1997