Let’s see how the "New Financial Model" will help the Government whose goal is “Welfare of its People”. Following are benefits to the government from the implementation of new financial model:

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Tax Collection Spring: Most important benefit to the government will be the “multifold rise in tax collection”.

  Increase in consumption => increase in aggregate demand => more sale/purchase of goods and services, so more tax collection to the government.

  With the implementation of the New financial Model: there will be data of every single sale/purchase of small to big final goods/services through Unique customer numbers. Billing of every sale/purchase will become a necessity and the consumer will himself be interested in getting the bill for every purchase because he will get the incentive. With every transaction coming in white: there will be no invasion of taxes and the government’s taxes will rise multifold.

In most countries specially developing ones, billing of purchase/sale of goods (in many industries) is not compulsory. Consumers/Sellers are themselves not interested in billing as they have to pay taxes on the transaction. In the New financial model, every transaction will be recorded.

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New Financial Tool: Every Government’s goal is the welfare of its people. The Government will have a New Financial Tool which it can use in normal/low/high growth periods to increase the country’s economic growth.

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Small and efficient government: As in the new financial model, the government’s role is to help market forces (demand and supply) work independently by incentivizing consumption; its size will be small. So it will be able to work efficiently as a regulator, to achieve the goals of economic growth and generating employment etc.

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No burden of Providing Pensions and Old age security: In “New Financial Model”, governments don’t have to contribute/pay for Pensions and Old age security as this model will introduce New Universal Pension System. See it in detail in next Chapter 13th.

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More Focus on Necessary work/sectors/things: It’s not that with the implementation of new financial model, the government’s role will end. There are necessary works/sectors/things where government action is necessary because private interests won’t be much interested in these.

1. Education, Healthcare, Defense etc. sectors where governments have to act actively.

2. Improving and strengthening the judicial system: so that speedy justice can be delivered.

3. Making efficient Labor market laws: beneficial to both employer and employee, stopping/reducing exploitation by either.

4. Making the consumer grievance redressal system strong and efficient for speedy resolution.

5. Checking the Monopolies and Cartelization of firms.

6. Removing poverty.

7. Bridging the gap between rural-urban and poor-rich.

8. Environmental protection, to deal with climate change in the long run.

9. Promoting clean/green energy. For example, Government can promote electric vehicles/other technologies by incentivizing (providing Future Money on buying) in the New financial Model.

10. Promoting research and development.

11. Promote investment in new technologies.

12. Etc.

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