Economy Group Analysis of current situation. Current sources of Income and development of income Current Expenses and development of expenses The flow.

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Presentation transcript:

Economy Group Analysis of current situation

Current sources of Income and development of income Current Expenses and development of expenses The flow of funds Issues identified Aim of Auroville Economy Proposed strategy

Current sources of Income and development of income Central Fund –Internal sources(98%) Commercial units (tenancy declining from 47% to 40%) Financial services (tendency increasing because of higher interest) –Foreign Exchange –Interest Guest services (tendency increasing) Aurovilians, newcomers and friends – External Sources(2%) Project contribution Foreign contribution Unity Fund Source CF annual report 2006/2007 (News and Notes Sept.07)

Current Expenses and development of expenses Education –Auroville –Outreach Maintenance –Children –Nutrition –Emergency fund Organisation Services Infrastructure Building and housing maintenance Subsidies Question: where from the money is coming for Maintenance ?

Maintenance Type of Maintenance provided by Auroville –Maintenances –Maintenance support (i.e., bridging, maternity, disabilities, senior fund) –Children, student, and apprentice maintenances –Dental care –Personal Support (formerly called the Personal Emergency Fund) Other social services: –Health services –Education –Children Nutrition

Issues Income from commercial units is declining. The white paper on economy shows very clear that the contribution of the units is very high! No money is spent for Investment, research & development and for future growth of the Economy No clear picture where the new comers would work and how many would be depending on maintenance

Henk Thomas’ study recommendations. It goes without saying that the formula to calculate Actual Contributions seriously erodes the financial position of commercial units. Actual contributions in fact absorb more than 60 percent of Gross Profits after Depreciation has been deducted.

Changes needed All Auroville units