Mediterranean Hegemony Road

Chapter 16. Fiscal Deficit

In fact, Kennedy is not really against the sale of land. You must know that in addition to the previously confiscated land, the government has also harvested a lot of land in the new territories.

Now there is a lot of land in the hands of the Bulgarian government. Even if part of the land is sold, it can still be compensated for with the development of new land!

But this involves the military, especially at the end of the Bulgarian War. The government sells land for military expenses, which can easily create an illusion to the outside world that the Bulgarian government is suppressing the military!

Once this illusion is created, the political consequences are often disastrous! The military of various countries in the Balkans are not soft persimmons. Don't look at the fact that the Bulgarian army seems to be very obedient now. It was all made by Ferdinand with money!

Now Bulgaria's annual military expenditure has tripled compared to before 1888, and it is much higher than the government's revenue at that time!

In fact, the military expenditure of the Balkan countries is almost no less than half of the fiscal revenue! On the face of it, the Bulgarian government allocates only 20% of the fiscal revenue every year. This is not enough for half of the military expenditure. The rest is borne by the government and Chinese enterprises. The profits from the land are borne by the government. The vast majority!

Now the annual income of the Bulgarian government from the land and its surrounding area is as high as more than 90 million levs, and the cabinet has not seen the money before throwing it into the mouth of the gold swallowing beast of military spending!

You must know that in 1893, the fiscal revenue of the Bulgarian government was only 164 million leva; in 1894, due to the influence of the war, the growth of fiscal revenue slowed down to only 172 million leva; in 1895, the war dividend was harvested, which stimulated economic development and financial The ministry has optimistic estimates that revenue could surpass the 200 million lev mark.

But military expenditures were 134 million levs in 1893; when the war broke out in 1894, military expenditures reached 220 million levs; in 1895, it dropped to 147 million levs!

No way, this is still the compulsory military service system, otherwise the cost will increase by 20 to 30 percent!

This is still based on the premise that every division in Bulgaria is now dissatisfied with the editor! The Bulgarian Army has a German defense system, with each full division of more than 17,000 people.

Each of the six main divisions has only more than 7,000 people, and the military expenditure of each division is as high as more than 13 million leva; the six new divisions each have more than 13,000 people, and the military expenditure of each division exceeds 700. 10,000 levs; more than 8,000 guards, the military expenditure is as high as more than 20 million levs!

The main reason why new divisions are cheap is that soldiers are obliged to do military service, so they don’t have to pay salaries, and their weapons and equipment are not as good as the main divisions, which greatly saves money!

Otherwise, the salary of more than 13,000 people will have to pay more than 10 million levs. It is not surprising why the salaries of soldiers are not high. Those who have been in the army know that there are very few expenses in the army. The army is responsible for food, clothing, housing and transportation, and basically what they get is the actual income!

This is also the purpose of Ferdinand's keenness to expand the new editorial division. It is simply that the main division is too expensive, and Bulgaria cannot afford it! Forced to do so, Ferdinand had no choice but to raise officers! The Bulgarian army now has a reserve of officers ready to triple its troops at any time.

On the surface, the current minimum wage in Bulgaria is 75 levs (about £3) per month. In fact, after deducting the cost of food, lodging, and clothing, only two-thirds of the workers can actually get it. , you may only get half of it when you encounter a black-hearted boss!

This is also the result of the government's intention to protect vulnerable groups. Otherwise, capitalists can trick workers to death by relying on loopholes in contracts!

The older capitalists are fine, they know they need to pay attention to their appearance, and the government is keeping an eye on them.

The most pitiful is the upstart small bosses, and it is difficult to see the good qualities of the Bulgarians in them.

It's because they caught one pit and one, and after the government cracked down, they turned to pit immigrants!

Constantine was silent, trying to persuade the military to agree to sell the government-owned land. Unless the government agrees to increase the allocation ratio of military spending, the military will definitely not agree!

However, increasing the proportion of military expenditure in fiscal revenue will make the government suffer even more. The growth rate of income from land is negligible, but the fiscal revenue of the Bulgarian government is growing rapidly!

It is easy to increase the proportion of military expenditure, but it is difficult to reduce it. There is not much difference in the Balkans, that is, there are many wars. Constantine does not think he can do it if he wants to reduce military expenditure.

They are all sitting at the top of the government, and it is very clear that Bulgaria's next strategic goal is the Ottoman Empire.

It is no problem to increase military spending in the short term, and they are willing to allocate special military spending during wartime. However, the long-term increase in the proportion of military expenditure is very troublesome.

You must know that, in order to reduce the proportion of military expenditure, the government's land, such a large piece of fat, was thrown out without hesitation by the cabinet before, just for long-term consideration.

Chekov thought for a while and said, "This matter is too big, let's report it to the Grand Duke for a decision!"

Everyone nodded. Now Ferdinand is in full swing in Bulgaria. On big issues, without his nod, it is impossible to pass.

Ferdinand, who worked hard in Sofia's palace and tried to make people, didn't know that trouble came again.

You must know that since 1892, half of the problems of the Bulgarian government have been financial!

Can only say: there is absolutely no money in this world!

Ferdinand deeply realized the essence of this sentence! Before the time-travel, he was a poor diaosi, and he ran around for money; after the time-travel, he was rich and rich. He thought he could get rid of the troubles of money, but he still had to work hard to make money!

After becoming a king, after a few years of comfortable life, I was worried about money again, and I still have no end of worry!

After listening to the introduction of Prime Minister Constantine, Ferdinand immediately knew that it was going to be bad, and the Bulgarian government was short of money again! For the cabinet's proposal, Ferdinand did not hesitate to reject it!

In any case, the Ottoman Empire is about to be attacked, and the government cannot do anything that might attack the morale of the military!

Even if the land is to be sold, it can only be considered after the war is over. As for the government's lack of money, Ferdinand decided to play tricks on the French, and the name of the usury empire was not for nothing!

With the victory of the Bulgarian War, the international credit strength of the Bulgarian government has been raised to a new level. If it is really not possible, you can ask the Russian Empire to come forward to guarantee it!

The government funding gap, for Bulgaria, may be astronomical, but for the usury empire of France, it is a drop in the bucket.

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