Although his own grade is not high, Xia Wuyan is also the minister who supervises Fusang affairs, and he can barely be regarded as a high-level official of the empire.

Therefore, Xia Wuyan also knew some of the empire's policies, and knew that the empire had always wanted to increase its gold reserves, and then engage in a gold standard system.

For this reason, the empire has been collecting gold in recent years, and it is rumored that the Ministry of Finance is collecting a large amount of gold in order to finally implement the gold standard, and the scale of the collection is not calculated in two, but in tons.

For the sake of gold, the empire even went to Australia and the Americas, which were far away, not to mention Fuso, which was close at hand.

In recent years, the empire's trade in Fuso has mainly been based on exporting goods and then exchanging them for various gold and silver.

Now that a large gold mine has been discovered, and it is also a gold mine on an island, it is not located in the Kanto region of Honshu Island like the Tofu Gold Mine, so it is not surprising that Xia Wuyan is tempted.

However, although he was already planning to send troops to Sado Province, he had just fought a battle in Osaka, and the First Mixed Brigade as the main force was still in Osaka, so it was difficult to transfer troops to Sado Province at this time.

In this regard, Xia Wuyan is not in a hurry, anyway, the Fusang region is already under the control of the empire, what you want to fight and where to fight, it is basically the empire that has the final say, and there is no hurry for a while.

Just when Xia Wuyan was tossing in Fusang, the official issuance of fiat currency in the domestic region also officially began!

In November, the empire officially announced to the whole world through the Tang Dynasty newspaper that from the sixteenth year of Xuanping, the abolition of the two yuan and the introduction of the legal tender 'yuan' were officially implemented.

The content of this notice is relatively detailed, and it basically informs the people of their concerns, including some detailed measures after the abolition of the two reforms.

For example, the original silver ticket can be exchanged for the new currency at a one-to-one ratio.

At the same time, it prohibits the minting of silver coins by the private sector, prohibits banks from issuing paper money, and prohibits the circulation of foreign coins in the country.

In order to avoid social unrest and hinder the financial reform policy of the empire, in fact, this time the abolition of the two yuan is more symbolic, and the actual change is not much, especially some things that are closely related to the people have not changed much.

The wealth of the people, whether held in the hands of existing silver bills, or in the gold, silver, and copper coins issued in the past, or even in the silver and gold bars minted by private individuals in the past and even today, does not have to depreciate.

For ordinary people, perhaps the biggest change is that the original silver ticket has been replaced with paper money.

However, this kind of seemingly no practical changes have been made, but its significance is very large, as long as the empire promotes the concept of fiat money, and then the people begin to gradually accept fiat paper money, then the subsequent empire can truly implement the gold standard policy.

And gradually the daily use of the currency, from the previous precious metal currency to paper money.

This is what the empire wants to see the most.

The decree announced in November did not cause much turmoil, not even in the stock market, and people calmly accepted the fact that fiat money will be issued next year.

After making such a good start, it also made Li Xuan feel a lot more at ease, and now it seems that after years of habit cultivation, the people of the empire are no longer very repulsive to the banknotes issued by the government.

By December, the empire had already completed preparations for the abolition of the two yuan, and the Mint Bureau under the Ministry of Finance had minted a large number of new coins in advance, including gold, silver, and copper coins.

These currencies are issued at the value of the new fiat currency.

A large number of fiat notes were also issued at the same time.

These silver coins and banknotes have been stored in advance to the many branches of the Royal Bank and the Imperial Bank according to a certain proportion, and as long as they wait for the sixteenth year of Xuanping, they can be officially issued to the whole country.

In the process of preparation, December passed quietly, and at the end of December, according to the tradition of the empire for many years, it was naturally also the time to draw up the budget for the following year.

When the budget was formulated, its monetary unit had been changed from the previous two to the yuan.

Of course, according to the detailed policy of abolishing the two yuan and changing the yuan, in fact, the value of one yuan and one tael of silver is comparable, so the data are the same, but the unit has changed.

However, according to the gradual change in the ratio of gold and silver, the value of one dollar will gradually be more than one tael of silver in the future, and there is no way, who will let the silver imported into the empire from all over the world get older and more, and the value of silver will continue to depreciate.

In late December, after a debate between the military and the cabinet, then a debate between the army and navy within the military, and the cabinet itself, the budget for Xuanping's 16 years was formalized.

The central government revenue budget for the 16th year of Xuanping of the Tang Empire was 100 million yuan, and in this fiscal revenue budget, the primary industry, that is, planting, breeding and other agriculture, animal husbandry, forestry, fishery and other related industries, contributed about 45 million imperial yuan, accounting for 45 percent.

Just from this ratio, it can be seen that the importance of the primary industry to the Tang Empire is still very important.

In order to support the domestic people's livelihood and encourage agriculture, the Tang Empire raised the agricultural tax in addition to the earliest unification period because of the gap in military spending, in fact, in other years, the collection of agricultural tax was generally lowered.

Otherwise, so many years have passed, and the income from agricultural taxes has not increased but decreased, and you must know that the area of arable land has continued to increase over the past so many years.

Tax cuts and subsidies in various ways were also important means for the Tang Empire to reduce the burden on peasants, improve their quality of life, and stimulate rural economic activity.

The agricultural tax has not increased for many years, but the financial revenue of the Tang Empire has increased year by year, and the increase is still very large, which is naturally due to the development of industry and commerce.

In addition to the tax revenue from agriculture, the rest of the fiscal revenue naturally comes from industry and commerce, which includes many taxes, such as special taxes on salt and tea, customs duties, corporate income tax, enterprise value-added tax, personal income tax, stamp duty and so on more than 100 kinds of taxes.

Among them, corporate income tax is the key!

Originally, there were a lot of tariffs, but in order to encourage overseas trade, the Tang Empire adopted low tariffs, and now the trade of the Tang Empire is mainly based on export trade, and the imports are some raw materials, and the quantity is actually very small.

Therefore, corporate income tax has become the focus!

However, if you are engaged in industry and commerce in Datang, no matter what industry you are engaged in, as long as it is a business activity, you must pay taxes.

Therefore, whether the business is running well or not, whether it makes money or not will not be said, but the tax bureau must have taxes to collect.

Thanks to the rapid development of industry and commerce in China, the proportion of fiscal revenue contributed by this industrial and commercial industry has only increased from 20 percent in the early years, to 30 percent, to 50 percent, and then to about 55 percent today.

In fact, according to the statistics of the Ministry of Finance, if the total tax revenue is counted, the proportion of tax revenue from industry and commerce will be even larger, reaching more than 60 percent.

However, in practice, because a large number of localities generally adopt the policy of tax reduction and exemption to attract enterprises to settle down and invest, many industrial and commercial taxes have not been collected.

For example, the famous Lingao Fishery Industrial Zone, which is famous for its fishery development, has always adopted a very preferential investment policy, in addition to the national policy, the local finance even dares to directly return most of the tax to the enterprise.

Lingao Fishery Industrial Zone can be regarded as a relatively extreme industrial zone, and other cities will not be so extreme, but this situation will occur more or less.

In this case, the empire actually lost a part of the tax revenue, but this is also a sacrifice that must be made in the process of development!

For many places, if it were not for various incentives such as tax incentives, capital would not have run over to build factories at all, and under the same conditions, why didn't they go to Shanghai? Instead of running to your poor place to invest?

For the sake of local development, all the local government yamen in the empire are bent on applying preferential policies to the central government to establish various industrial zones, and the central government of the empire sometimes has to approve it in order to support local development.

If it were not for the loss of a large amount of tax revenue, the tax revenue contributed by industry and commerce would have increased by at least 30 percent.

But then again, if it weren't for the rich policies of the empire, domestic industry and commerce would not have developed so rapidly.

Xuanping has a fiscal revenue budget of 100 million yuan in 16 years!

If it is according to the strict control of fiscal revenue and expenditure in recent years, the budget of fiscal expenditure will not be more or less, probably 100 million yuan, and it is very likely that it will be 100 million yuan, and part of it will be set aside as a fiscal surplus.

This year, however, the budget for fiscal expenditure has reached an astonishing 110 million yuan, which will result in a fiscal deficit of up to 100 million yuan, which is almost invisible in previous years.

However, under the premise of the increase in the fiscal deficit, the total amount of military spending received by the military is the same as in previous years, and the administrative expenses of various cabinet departments are basically the same as in previous years.

However, this year's fiscal expenditure budget is only 95 million taels of silver, that is to say, when this year's fiscal expenditure budget reaches 110 million yuan, including military spending, the proportion of many previous budgets has correspondingly declined.

Where did all that money go?

This additional budget totaling 15 million yuan will be used for water conservancy construction.

The monarchs and ministers of the Tang Empire were frightened by this year's large-scale floods of the Yellow River and Huai River, killing and injuring thousands of people, affecting tens of millions of people, not to mention economic losses, the most conservative estimate is more than 50 million.

They were worried that similar large-scale floods or droughts would occur in the future, so whether it was Li Xuan or the ministers of the imperial study, they were all determined to do a good job in water conservancy facilities, even if they were smashing pots and selling iron.

For this reason, they have not only filled in the increased fiscal revenue this year, but are also preparing to issue treasury bonds of up to 10 million taels of silver.

Without exception, this money will be used for the construction of water conservancy facilities across the country.

With so much money thrown into it, Li Xuan didn't believe that he couldn't do water conservancy construction!