Bulgarian Empire

Chapter 156: 16) Fiscal Deficit

Chapter 156: 16) Fiscal Deficit

In fact, Kennedi was not really opposed to the sale of land, bearing in mind that in addition to the previously confiscated land, the government had harvested a lot of land in the new territories.

Now the Bulgarian government has a lot of land in its hands. Even if some of the lands are sold, with respect to but with the development of additional land, it can still make up for it!

But this involves the military, especially at the moment of the end of the war in Bulgaria when the government sold the military land provided. It is easy to create an illusion to the outside world that the Bulgarian government is suppressing the military!

Once this illusion got created, the political consequences are often catastrophic! The military of the countries in the Balkans is not soft. Do not look at the Bulgarian army now seems to be very obedient. It is all Ferdinand with money out!

Now Bulgaria's annual military expenditure, compared to 1888 years ago, has increased twice as much as the government's revenues at that time!

In fact, the military spending of the Balkan countries is rarely less than half of the revenue! On the surface, the Bulgarian government's annual allocation of military expenditures accounted for only twenty percent of revenue. It is not enough to cover half of the military expenses. The rest got borne by the profits of state enterprises in the hands of the government, and the government's hands of land revenue, accounting for the vast majority!

Now the Bulgarian government gets more than 90 million Leva a year from the land and its surroundings, and then the cabinet throws money into the mouth of that money gobbler before it even sees it!

One should note that in 1893, the Bulgarian government's revenue was only 164 million Leva, and in 1894, revenue growth slowed down to 172 million Leva due to the war. In 1895, reaped the war dividend, which stimulated the development of the economy. The Ministry of Finance optimistically estimated that the revenue might exceed the 200 million Leva.

But military spending in 1893 was 134 million Leva; in 1894, when war broke out, it reached 220 million Leva; in 1895, it fell back to 147 million Leva!

One can't help that this is still a compulsory military service system. Otherwise, the expenses would increase by 20 to 30 percent!

And that's based on the premise that Bulgaria is now operating with each division under full strength! It got based on the premise that the Bulgarian Army prevented the German system, with each full division up to 17,000 men.

Each of the six main divisions had just over 7,000 men, and the military expenditure of each division amounted to more than 13 million Leva. Each of the six new divisions had more than 13,000 men, and the military spending of each division amounted to more than 7 million Leva. The military expenditure of the near-guard army, with more than 8,000 men, amounted to more than 20 million Leva!

The main reason for the low cost of the new divisions is that the soldiers are compulsory for military service and can do without pay, and the weaponry is not as good as in the main divisions, which is a great saving!

Otherwise, the wages of more than 13,000 people alone will have to pay more than 10 million Leva. No need to wonder why the soldiers have not got paid well. Those who have been soldiers know that there are few expenses inside the army. Food, clothing, housing, and transportation are the responsibility of the military, and what you get in hand is basically the actual income!

Ferdinand is also keen to expand the new division's purpose; entirely, the main division is too expensive, and Bulgaria can not afford to raise it! Had no choice, Ferdinand had to choose to raise officers! Now the Bulgarian army's officer reserves are ready to expand the troops three times.

On the surface, the minimum labor wage in Bulgaria is now 75 Leva per month (about 3). In fact, after deducting food, accommodation, and clothing costs, workers can really get their hands on less than two-thirds. When you meet the ruthless boss may only get half!

It is still the result of the government's intention to protect the socially weak. Otherwise, the capitalists would be able to screw the workers by the loopholes of the contract!

The larger capitalists are okay, know to save face, and pay attention to the food, and the government is watching closely. The media also love to do raids, not dare to do anything for the sake of reputation.

The most serious problems are the small bosses mobs. It isn't easy to see the good qualities of Bulgarians in them. The government cracked down on one of them after turning to graze immigrants!

Konstantin is silent, trying to convince the military to agree to sell government-owned land. Unless the government decides to increase the percentage of military funds allocated, the military will certainly not agree!

However, by raising the ratio of military spending to revenue, the government is more at a disadvantage regarding land revenue growth rate, minimal. Still, in the case of the Bulgarian government's revenue, it is growing at a high rate!

Raising the military spending ratio is easy, but it's harder to bring it down again. There is nothing else in the Balkans but a lot of wars. Wanting to compress military spending, Konstantin does not think he can do it.

Those sitting here are the top government officials, and it is clear that the next strategic target for Bulgaria is the Ottoman Empire.

Short-term increases in military spending this is no problem. They are willing to allocate special wartime military spending. But a long-term increase in the proportion of military spending is a headache.

You know, in order to compress the ratio of military spending, the government's land, that big piece of fat, which the previous cabinet was not hesitant to throw out, it was for long-term planning.

Chekhov thought about it and said, "This matter is too big, let's report it to the Knyaz for a decision!"

The crowd nodded. Ferdinand is now as good as gold in Bulgaria on the big issues. Without his nod, it is simply impossible to pass.

Ferdinand, who was working hard in the Sofia palace, trying to make a baby, didn't know that trouble was at his door again.

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

I can only say: the world without money is a world in heaven!

Ferdinand then very deeply felt the essence of the phrase! Before traversing, he was a poor loser and then ran around for money; after he traveled, he was wealthy and thought he could get rid of money troubles, but he didn't expect that he still had to work hard to earn money!

After becoming monarch, you have a few years of a comfortable life, and again worrying about money, and still can not see the end of the worry!

After listening to Prime Minister Konstantin's report, Ferdinand knew it would be bad. The Bulgarian government was short of money again! Ferdinand did not hesitate to veto the cabinet's proposal!

In any case, soon to take on the Ottoman Empire, anything that might strike a blow to the military, the government can not do now!

Even if you want to sell your land, you can only consider it after the war is over. As for the government's lack of money, Ferdinand decided to call on the French; the usurious empire's name was not for nothing!

It raised the Bulgarian government's credit strength in the international arena a notch with the victory of the war in Bulgaria, and it was impossible to ask the Russian Empire to guarantee it!

The government's funding shortfall, which may be astronomical for Bulgaria, is a complete drop in the bucket for France's usurious empire.