A guide to the Economy and Government Budget Management

After the Alphonso administration collapsed the economy it's your job to recover it. This guide provides the necessary information and tips for economic planning to achieve a full recovery and make Sordland an economic powerhouse. Let's eradicate poverty, Anton!

General Tips on Economic Planning

Investment Tips
You will experience more economic gain if you concentrate your investments. For example if you invest in Bergia the Sarna agricultural zone will be more effective. Otherwise, you can spread out your projects so you recover every region. This way you will spend your budget more inefficiently but end up with a stronger economy in the end. In general, it is easier to concentrate your investments for higher economic gain compared to government budget spent.

Indirect Factors which impact the Economy:

There are some factors which have an impact on the economy but it might not be clear. For example, cutting the military's personnel decreases economic development. Increasing its size decreases unemployment. Being friendly with the Oligarchs significantly boosts the economy. Picking Underhall for construction makes them happy and so does the railway.

Economy types and an example of a recovery

Planned Economy
With a planned economy you can trade with Wehlen, Valgsland and Agnolia. It relies on nationalization. A planed economy is better for war and can help increase living standards due to not privatizing education or health.



An example of a recovered planned economy is:
First infrastructure project - highway (-1)
Invest in Lorren (-1)
Raise taxes depending on budget
Trade with Agnolia (-1)
Trade with Wehlen (+2)
Invest in Morna Port (-2)
Nationalize companies (-2)
Trade with Valgsland (+2)

Market Economy
With a market economy you can trade with Wehlen, Lespia and Agnolia. It relies on limited government intervention and privatization. A market economy can decrees living standards if health and education are privatized without extra budget.



An example of a recovered market economy is:
First infrastructure project - railway (-1)
Lower taxes on small, medium and big businesses (-3)
Privatize education (+1)
Trade with Agnolia (0)
Invest in Benfi airport (-2)
Privatize companies (+3)
Trade with Lespia (0)

Time to make Symon proud.

Trade

Trade is important for improving the economy. It can give you improvements in regions, extra budget or extra economic development depending on with who you trade.




Agnolia
Trading with Agnolia will improve the Agnland region and grant you extra economic development. The trade deal is only possible if you decided to keep immigration relax or recognize the Heljiland island as Agnolian. The basic trade deal costs 1 budget but if supported relax immigration you can negotiate with Van Hoorten. He will want you to recognize the Heljiland island as theirs and the trade deal won't cost anything. You may decide to do this depending on your diplomatic situation and plans. If you do so a trade deal with Valgsland will not be possible.

Get the good trade deal with Agnolia when playing capitalist or not wanting to trade with Valgsland. Get the bad trade deal or don't trade with them when playing malenyevist and wanting to trade with Valgsland.

Wehlen
Wehlen offers you a very lucrative deal which will give you +2 budget and improvements in the Bergia region. However, if you decide to help them your Bludish opinion falls and you will have some problems with the AN. Furthermore, Lespia will offer you a bad trade deal which will cost you 1 budget. If you decide to trade with Wehlen and think you don't need their help in the war, refuse the first offer and accept the second one. This will only partly damage your international standing and Blud opinion.

Trade with Wehlen when playing malenyevist or are willing to settle for the worse trade deal with Lespia. Get directly involved in the operation if you want them as an ally and are willing to suffer the penalties. Don't trade with them when you want the good trade deal with Lespia.

Lespia
Trading with Lespia is useful when playing capitalist. Lespia is the strongest economy in the region and as such trading with them significantly increases economic development. Furthermore you will be closer to ATO. However, if you trade with Lespia, Valgsland will sanction you and you will be unable to trade with them. Your trade deal with them will be impacted by if you've traded with Wehlen or not. Trading with Wehlen will make you lose 1 budget for the trade deal.

Trade with Lespia when playing capitalist or Valgsland refuses trade deal.

Valgsland
Trading with Valgsland will grant you +2 government budget and will improve a region. You will also be aligned closer to the CSP. The trade deal will be impacted by if you allied Agnolia or recognized the island or not. If you allied or recognize the island you won't be able to trade.

Trade with Valgsland when playing malenyevist or Lespia refuses trade deal.

Examples of Trade deal combos

Usually when I play capitalist (market economy) I go for the following trade deals:
Agnolia (good deal) + Lespia. You can also trade with Wehlen but be prepared to suffer international penalties and a worse trade deal with Lespia

Usually when I play malenyevist (planned economy) I go for the following trade deals:
Wehlen + Valgsland. You may want to also trade with Agnolia if your budget allows you to suffer the -1.

Fixing Production & Tax Evasion

Stagnant Production
Increased production is useful mainly for war. It does have an economic benefit but it's fairly insignificant. To increase production you need to do one of the following combos:

• Sarna Agricultural Zone + Expand Agricultural Industry (4 budget)
  
• Corniat Industrial Zone + Expand Electronics / Automotive Industry (4 budget)
  
• Increased Military Budget + Expand Military Industry (3 budget)

The military industry combo is a bit less expensive but it has less of an economic benefit compared to the rest. However, it can be combined with an infrastructure project like the Morna port or Benfi airport. This will make you have both green production and green infrastructure in the economy overview.

Tax evasion
Tax evasion is problematic for the economy. To fix this problem you have invest into the Anti-Corruption Police. Reducing taxes is also helpful but in my experience it's not enough to fix the issue. Eliminating tax evasion will grant you an extra government budget point. It will also help increase Economic Development. Tax evasion can also be reduced by signing the Women's liberation act.

Early Unrest and Emergency

Early Unrest
Unrest after the murder of Bernard Circas causes loss of economic development. To limit unrest you can distribute stimulus cheques, visit affected tows in person, sign the workres' right act, attend the funeral of Circas and call for peace. Expanding the Law and Enforcement budget helps quell protests. Even tho you will suffer an unfortunate loss of economic development I will still advise you to not model your early game economic decisions after what reduces unrest if you would prefer a different option. For example bailout to businesses over stimulus.

Emergency
Declaring an emergency significantly reduces economic development and makes Oligarchs worried. If want to declare an emergency don't count on a good early game economy. You can still recover it by smart economic planning later on, so no need to worry. Make sure you aren't declaring an emergency as a capitalist since you will be forced to nationalize companies or face impeachment by the Supreme Court.

Living Standards

Improving living standards will grant you additional popularity ahead of the election. Factors which have an impact of them are:

Healthcare
Giving quality healthcare to even the rural parts of Sordland will increase living standards. This can be done by expanding the budget of the health ministry and improving treatment. Privatizing healthcare without expanding its funding and improving rural treatment will impact living standards negatively.


Education
Similar to health, privatizing education without increasing its funding will impact living standards negatively. If you increase its budget or privatize you should focus on building new schools. Increasing the budget of both education and healthcare will give you the relieved welfare system modifier which helps with living conditions.


Projects and bills
Building the H-3 highway will help increase living conditions, signing the workers' rights bill and other welfare bills will also increase them. Welfare decrees increase living standards. Raising taxes on smaller businesses decreases living standards and lowering them increases them. Signing extra tax bills like on alcohol or cigars will further lower living conditions.

War Economy

There is no economy if there's no Sordland, so how do we make sure the economy is well prepared to push the queen back where she came from? A strong economy will always help with the war. It is significantly harder to defeat Rumburg with a depressed economy than with a recovered one. Tips for economic planning regarding the war:


Trade deals and allies
The most important part - allies. Rumburg is a very strong and big nation and while it's not impossible for Sordland to defeat them alone it's very difficult. That's why most people rely on allies to help them. You have to manage your diplomacy well. You should always sign a trade deal and an alliance with one of the two big nations except if you already have an alliance with both Agnolia and Wehlen. I consistently win the war with two allies and a recovered economy.

Tactics
Not really economy related but I can't not mention it. Going for Iosef's strategy when deciding what to do with the military budget will make your economy suffer or will not increase it while going for Kruger's will either not decrease the economy or improve it depending if the military has been funded or not. I still highly recommend you to go for Iosef's plans if not fighting alone. Your economy will suffer a bit but it is more likely that you will defeat Rumburg when the time comes.

Tie infrastructure projects to allies
It's important that your allies arrive on time. You should tie the infrastructure projects to what your allies are. For example when you ally Lespia it's better to build the L-1 Railway, so that their troops move faster to the front line.

The benefits of a recovered economy
If you have managed to successfully recover from the recession your allies will send more of their military to help you. An important factor in the war is production. Increasing it will help you defeat Rumburg but it's not required.

Planned > Market
Regarding war, a planned economy is stronger than a market one. This shouldn't make you always go for a planned economy but if you already plan on doing so it's better to go the full way and get a consistent planned economy.

Greci Sordland!

Public Opinion and Later Unrest

To make sure your hard work for the economy isn't destroyed by instability and riots you have to remain popular. A strong economy will make people happier but it won't be enough to avoid protests if you're radical. Having protests trigger will cause a significant loss of economic development.

Avoiding unrest
The easiest way to avoid unrest is to remain popular. This can be achieved by focusing on public opinion after the final constitution meeting or by not enacting anything too radical. Sign workers' rights, visit affected towns in person, don't put Soll in jail and don't de-Sollize. Censoring or controlling the media also helps a lot with avoiding unrest.



Dealing with Unrest
Talking
The easiest way to deal with unrest is to talk to the protesters. They will ask for a rights act which will cost 1 budget but will save you economic development if you haven't invested in the State Secret Police or the Community Police



Defeating
If you have invested in the community police it's best to send them. They will deal with the rioters with only very limited casualties, if any. You won't suffer a further loss of economic development.
If have invested in the State Secret Police the easiest way to deal with protests is to send the SSP. They will swiftly deal with the problem and you will suffer only a limited further loss of economic development.

Turn I

Mega Infrastructure project (-1 Budget)

• Highway - Improves Agnland, Can be improved by investing in Agnland and trading with Agnolia, improves living conditions
  
• Railway - Better for economy on its own, Happier oligarchs, Happy Gus, Useful when allied with Lespia and fighting war

Companies

• SSC - Planned economy, Requires more funds or delays project, -1 Government budget if market economy
  
• Underhall - Happy oligarchs, No delay, -1 Government Budget, Market economy
  
• Taurus - Problems with Workers’ rights bill, Can be exploited by vetoing the WRB and passing it later, Will experience a delay if not granted additional funds or caved to strikers, Market economy

Turn II

Economic Relief Act ( -1 Budget)

• Stimulus checks - Less Unrest, Higher Opinion, Malenyevist
  
• Business bailouts - Happy Oligarchs, Lower Opinion, Capitalist, Happy Gus
  
• Reject plans - -1 Economic development, Unpopular

Turn III

Budget ( -4 - +4 Budget)

Health ( -1 - +1 Budget)

• Fund - Relieved welfare system, Improved living standards, Epidemic tackled, Get money back later
  
• Maintain - No improvement, Problems in pandemic, Overburdened welfare system
  
• Defund - Decrees in quality and access, Lower living standards, Problems in pandemic, Overburdened welfare system

Education ( -1 - +1 Budget)

• Fund - Relieved welfare system, Improved access, Education reform, Less Sollism
  
• Maintain - No improvement, Failed education reform, Overburdened welfare system
  
• Defund - Brain drain, Failed education reform, Overburdened welfare system

Law & Enforcement ( -1 - +1 Budget)

• Fund - ACP or SSP, Less unrest, Tackled crime
  
• Maintain - No change
  
• Defund - Higher unrest

Military ( -1 - +1 Budget)

• Fund - Stronger in war, Reduced coup chance, Cheaper military industry
  
• Maintain - Chance of coup
  
• Defund - Weak in war, Increased chance of coup

Turn IV

Worker’s rights act ( -1 Budget)

• Sign - Less unrest, Higher opinion, Worse relations with Oligarchs, Malenyevist
  
• Veto - Lower opinion, Happier Oligarchs, Capitalist

Investment ( -1 Budget)

• Bergia - Increased Blud opinion, Increased regular Opinion, 1 Economic development, Improved local economy, Improved Sarna agricultural zone
  
• Lorren - Higher opinion, 1 Economic development, Improved local economy, Improved Morna port
  
• Agnlnad - Increased opinion, 1 Economic development, Improved local economy, Improved highway
  
• Don’t invest - No effect

Taxes ( -3 - +3 Budget)

Raise (+1 - +3)

• On corporations - Lower Oligarch opinion, +2 budget, significantly lower ED, Malenyevist
  
• On small and medium businesses - +1 budget, lower ED, lower living standards

Lower (-1 - -3)

• On corporations - Happier Oligarchs, -2 budget, significantly increased ED, Capitalist
  
• On small and medium businesses - -1 budget, increased ED, slightly higher living standards, Capitalist

Education Privatization ( 0 - +1 Budget)

• Privatize - +1 Government budget, +1 Improvement, Capitalist, Decreased quality, Decreased living standards if you haven't invested in education, Lower Conservative opinion, market economy
  
• Don’t - Malenyevist, planned economy

Turn V

Superpowers Offering Financial Aid ( +1 Budget)

• Arcasia - Better relations with Arcasia, +1 Government budget, Increased coup chance, Can’t trade with Valgsland
  
• United Contana - Better relations with United Contana, +1 Government budget, Businesses worrying, Increased coup chance, Can’t trade with Lespia

Trade Deal ( -1 - +2 Budget)

• Agnolia
  
  • Expensive steel - Improvements in Agnland, -1 Government budget
    
  • Cheaper steel - Improvements in Agnland, Can’t trade with Valgsland
• Wehlen
  
  • Take part in operation - +2 Government budget, significantly lower Blud opinion, International anger, Alliance if no unrest in Bergia, Bad/no trade deal with Lespia
    
  • Close borders - +2 Government budget, Somewhat lower Blud opinion, Bad/no trade deal with Lespia
• If not trading with either - Failed trade negotiations

Turn VI

Economic Investment Project ( -2 Budget)

• Benfi International Airport - Improved infrastructure, Useful when trading with Lespia
  
• Morna Port - Improved infrastructure, Useful when trading with Valgsland, Can be improved by investing in Lorren
  
• Conriat Industrial Zone - Raises production, Can (?) be improved by railway
  
• Sarna Agricultural Zone - Raises production, Can be improved by investing in Bergia
  Companies:
  
  • Taurus
    
    • Passed workers’ rights - Market economy, -1 Government Budget
      
    • Vetoed workers’ rights - Market economy, Free
  • Underhall - Market economy, -1 Government budget, Happier oligarchs
    
  • SSC
    
    • Planned economy - Planned economy, Free
      
    • Market economy - -1 Government budget

Health Privatization ( 0 - +1 Budget)

• Privatize - +1 Government budget, +1 Improvement, Capitalist, Decreased quality, Significantly decreased living standards if you haven't invested in health, Lower Conservative opinion, market economy
  
• Don’t - Malenyevist, planned economy

Turn VII

Nationalize/Privatize ( -2, +3 Budget)

• Nationalize - Worries business, Happier Old Guard and Conservatives Malenyevist, Helps with planned economy, Planned economy helps with war ( -2 Government budget)
  
  • HOS - Fully nationalize - -1 budget (If not full, Koronti will smear your reputation in the media)
    
  • Bergia Steel - Fully natinalize - -1 budget, Tusk hates you (Do this if allied with Koronti and/or not friendly with Tusk)
• Status Quo - No change
  
• Privatize - Worries conservatives, Capitalist
  
  • Minority share - +2 Government budget, Decreases conservative support, Content Oligarchs
    
  • Majority share - +3 Government budget, Lowers conservative support, Happy Oligarchs
    
  • Full - +3 Government budget, Breaks conservative support, Happier Oligarchs

Turn VIII

Decrees

• Allow Private Prisons (+1 Budget) - Capitalist
  
• Fair Trade and Competition Commission - +1 Economic development
  
• Lower Retirement Age (-2 Budget) - +1 Economic development, Improved living conditions, Malenyevist
  
• Free Prescription Medicine (-1 Budget) - Improved living conditions, Malenyevist
  
• Remove Independence of the Central Bank - +1 Economic development, Malenyevist, worries Oligarchs a lot
  
• Rural Education Institutes(-1 Budget) - +1 Economic Development, Malenyevist

Trade negotiations
Lespia

• Good deal - Capitalist, Extra economic development, better when combined with Benfi airport
  
• Bad deal - Capitalist, -1 Government budget, Extra economic development, better when combined with Benfi airport

Valgsland

• Malenyevist, +2 Government budget, even better when combined with Morna port

Less Smoke Bill (+1 Budget)

• Sign - +1 Budget, -1 Economic development, Malenyevist, helps with welfare
  
• Veto - Capitalist

Note: This bill will only appear if you're running on a deficit.

Security Act

• Sign - Sollist, Slightly increased public opinion, slightly decreased Blud opinion, -1 Economic development
  
• Veto - Slightly decreased public opinion, slightly increased Blud opinion, Reformist

Note: This bill will only appear if Sordland is facing unrest.

Healthcare spending and pandemic
If have invested in healthcare you won't need extra investment there to deal with polio. However if you haven't it will cost 1 budget. If have invested in health you will also get the following event:

Healthcare spending

• Start medical scholarship - Increased public opinion, +1 economic development, helps with welfare
  
• Build state of the art medical school - Increased public opinion, +1 economic development, helps with welfare
  
• Give free eye tests - Significantly increased public opinion, Malenyevist
  
• Give free dental care - Significantly increased public opinion, Malenyevist
  
• Don't spend - +1 government budget

Industrial Expansion (-2 - -3 Budget)

• Expand agricultural industry - Helps recover Bergia, -2 Budget, gives high production when combined with Sarna Agricultural zone, higher Bludish opinion
  
• Expand automotive industry - Helps recover Lorren, -2 Budget, gives high production when combined with Corniat industrial zone, slightly higher opinion
  
• Expand electronics industry - Helps recover Lorren, -2 Budget, gives high production when combined with Corniat industrial zone, slightly higher opinion
  
• Expand military industry - Slightly higher opinion, -2 Budget if funded military, -3 if not, gives high production when combined with increased military budget
  
• Don't expand - no effect

Turn IX

Women's liberation act (-2 Budget)

• Sign - Reformist, -1 economic development, popularity with women, slightly helps solve tax evasion (?) -2 government budget
  
• Veto - Sollist

Human Dignity Bill (-1 Budget)

• Sign - Sollist, increased conservative support, -1 government budget
  
• Veto - Reformist

Alcohol Tax Act (+1 Budget)

• Sign - +1 Government budget, improved welfare, -1 Economic development, Malenyevist, decreased public opinion
  
• Veto - Capitalist

Fair Luxury Tax Act (+2 Budget)

• Sign - +2 Government budget, Malenyevist, -2 Economic development, decreased public opinion
  
• Veto - Capitalist

Citizens' Mobility Act (-2 Budget)

• Sign - +1 Economic development, -2 Government Budget, Malenyevist, Increased public opinion
  
• Veto - Reduced public opinion

Note: This bill appears only if you have a budget surplus.

[A Monarchist]

bruh back in the good old days stimmies were 1 budget

[Mr. T]

Hopefully, this gets updated

[MFX_Media]

Bailout or stimulus checks are -2, not -1.

[Bishi]

Wow this is really outdated. 2.0 really wrecked this strategy only a few turns in...

[Vort the Trap Lord]

2.0 update!!!!

[Perun_Siannoodle]

@Melon_Man_Dan It's not the anti-corruption police. If you split the budget you'll get the community police. Their only real use is the dealing with unrest and as such I almost always pick acp or sp

[Melon_Man_Dan]

@daviddanyluk55 I assume its the anti-corruption police because it's paired next to the secret police

[daviddanyluk55]

Hi there, What is Community Police? I have not come across Community Police in my play through. Good general guide.

[Rodvafe]

One question, what about privatizing companies differently? before with minority in SSC and majority in Nedam I would get 3, but now only 2

[Joakim]

Excellent guide! Exactly the kind of clarification of the consequences I needed!

Just to clarify one thing, the +2 Budget from trading with Wehlen happens not untill after the meeting with Iosef regarding conscription concludes. All trade deals seem to have a delay untill the benefit takes effect.