Mordusia

[Autokrator]

Budgetary crisis and cabinet troubles

First real crisis for the liberal government?

February 5686 (backdated)

---

Randworth - The Forward Mordusian-led centrist government could be set to be the most stable and crisis free government of the last decade, with various stable reforms being put into place with the real major one being the education reform and the states reform that is still being worked on. However, the real first real major setback for the government came this month in the form of two big problems: Budgetary problems and political differences. These problems can only be described as hurtful and precisely the kind no government wants to have all at once.
 
The first problem came in the form of huge budgetary deficits thanks to the subsidy on fuel. It came about with the support of Labor to eleviate the cost for workers and the transport sector for the high costs of fuel and oil during the Vamasj crisis. The Vamasj network suffered several setbacks that caused huge shocks in the oil market. Currently, Mordusian Royal Oil (owned by the state, the Luthorian Oil Company and the Crown) is fully dependent on oil from the Vamasj network and Mordusia lacks its own oil reserves and refineries. This shock was stopped by creating a subsidy for oil based fuel. After the shock the subsidy for companies was abolished, however the one for citizens remained as it is very popular amongst Reform and Labor voters. However the huge cost of this subsidy was never calculated in the budget to remain on the books for years on end, causing a budgetary deficit that needs to be resolved. Forward Mordusia wants to lower the subsidy, Reform under pressure of Labor wants to keep it and the Wildlife Party wants to cut it for enviromental reasons. 

This split between the coalition partners resulted in a second problem, the political differences between the coalition partners. The Wildlife Party is not willing to budge on this issue and has weirdly the support of the conservative National Party. The leader of His Majesty's Loyal Opposition from the National Party, Reginald Humperdinck has called the subsidy ''fiscally suicide'' and ''typical of a leftist government'' to ''waste money''. This blowback against the coalition from a coalition partner and the opposition by the National Party is painfull, especially since the Forward Mordusia party has already a lot to prove, seeing that it isnt historically part of the mainstream dominant parties. Can the government come to a compromise to save the budget and keep the cabinet together is the big question of the day. The Prime-Minister Woodford has stated that the cabinet will come together at the end of the week to resolve the matter and put a bill before parliament as soon as possible.