Public Bond Act

REJECTED by the General Assembly on 2 February 663. 3 AYE, 12 NAY, 1 ABSTAIN.
The purpose of this act is to provide citizens with the opportunity to invest in government-issued bonds through an open market mechanism. This will allow citizens to contribute to the financing of public projects, infrastructure, and other governmental initiatives while fostering economic growth and financial inclusion.

Article 1: Definitions

1.1. "Government Bonds" refers to debt securities issued by the government, representing a promise to repay the principal amount along with interest over a specified period.

1.2. "Open Market" refers to a marketplace where buyers and sellers can engage in the trading of government bonds.

1.3. "Citizen" refers to any legal resident or entity within the jurisdiction eligible to participate in the purchase of government bonds.

Article 2: Establishment of Open Market for Government Bonds

2.1. The government shall establish an open market or a public stock market for the buying and selling of government bonds.

2.2. The open market shall be accessible to citizens through authorized financial institutions, online platforms, mail services or other designated channels.

2.3. The government may periodically issue government bonds with varying maturities, interest rates at a base rate of 2% annually, and terms to meet its financing requirements.

Article 3: Eligibility Criteria

3.1. Any citizen or legal entity meeting the eligibility criteria established by the government may participate in the open market for government bonds.

3.2. Eligibility criteria may include factors such as age, legal status, financial capacity, and any other criteria deemed necessary by the government to ensure responsible participation.

Article 4: Regulatory Oversight

4.1. A regulatory authority, designated by the government, shall oversee the open market for government bonds to ensure transparency, fairness, and compliance with applicable laws.

4.2. The regulatory authority shall have the power to establish and enforce rules, monitor market activities, and investigate any potential misconduct related to the buying and selling of government bonds.

Article 5: Disclosure and Information

5.1. The government shall provide clear and comprehensive information about each government bond issuance, including but not limited to terms, conditions, interest rates, and the purpose of the financing.

5.2. Financial institutions participating in the open market shall provide citizens with accurate and timely information regarding the purchase, sale, and management of government bonds.

Article 6: Taxation Considerations

6.1. The government may establish tax incentives or exemptions for citizens investing in government bonds through the open market to encourage participation.
6.2. The tax treatment of income generated from government bonds shall be outlined in relevant tax laws and regulations.

Article 7: Implementation

7.1. This act shall come into effect upon enactment.

7.2. The government shall take necessary steps to implement the provisions of this act, including the establishment of the open market, eligibility criteria, and regulatory oversight.

7.3. Any existing laws or regulations inconsistent with the provisions of this act shall be amended accordingly.

7.4. The government may issue guidelines and regulations as necessary to facilitate the effective implementation of this act.

Tabled by Joe Fala, DPPK