Chapter 16 Fiscal Deficit
In fact, Kennedy was not really against the sale of land, you must know that in addition to the previously confiscated land, the government also acquired a lot of land in the new territories.
Now the Bulgarian government has a lot of land in its hands. Even if part of the land is sold, it can still be made up for with the development of new land!
But this involves the military, especially at the end of the Bulgarian War, when the government sells and provides land for military expenses, which can easily create a false impression to the outside world that the Bulgarian government is suppressing the military!
Once this delusion is created, the political consequences are often catastrophic! The military of the Balkan countries is not a soft persimmon, don't look at the Bulgarian army now it seems to be very obedient, it was all smashed by Ferdinand with money!
Bulgaria's annual military expenditure is now twice as high as it was before 1888, and much higher than the government's revenues at that time!
In fact, the military spending of the Balkan countries is hardly less than half of the fiscal revenue! On the surface, the Bulgarian government allocates only 20 percent of its fiscal revenue every year on military expenditures. This is simply not half of the military spending, and the rest is borne by the profits of state-owned enterprises in the hands of the government, and the land revenue in the hands of the government accounts for the vast majority!
Now the annual income of the Bulgarian government from the land and its surroundings is as high as more than 90 million leva, and then the cabinet has not seen the money, and it is thrown into the mouth of the gold-swallowing beast of military spending!
You must know that in 1893, the Bulgarian government's fiscal revenue was only 164 million leva; in 1894, due to the impact 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 the Ministry of Finance's optimistic estimate of revenue may exceed the 200 million leva mark.
But military spending was 134 million leva in 1893, 220 million leva when war broke out in 1894, and 147 million leva in 1895!
There is no way, this is still a compulsory military service system, otherwise this cost will increase by twenty or thirty percent!
This is still based on the premise that every division in Bulgaria is now not satisfied! The Bulgarian army defended against Germany, with more than 17,000 people in each full division.
Each of the six main divisions had just over 7,000 men, and the military expenditure of each division was as high as more than 13 million leva; The six new divisions each had more than 13,000 men, and each division had a military expenditure of more than 7 million leva; There are more than 8,000 guards in the army, and the military expenditure is as high as more than 20 million leva!
The main reason why the new division is cheap is that the soldiers are compulsory for military service, so they do not need to be paid, and the weapons and equipment are not as good as the main division, which greatly saves expenses!
Otherwise, the salaries of more than 13,000 people alone would have to pay more than 10 million leva, and there is no wonder why the salaries of soldiers are not high. Anyone who has been a soldier knows that there are very few expenses in the army, and the army is responsible for food, clothing, housing and transportation, and what you get is basically the actual income!
This is also the purpose of Ferdinand's enthusiasm for expanding the new division, it is completely that the main division is too expensive, and Bulgaria can't afford it! As a last resort, Ferdinand had no choice but to raise an officer! The Bulgarian army now has a reserve of officers that can be tripled at any time.
On the surface, the minimum labor wage in Bulgaria is now 75 leva per month, (about 3 pounds), but in fact, after deducting food, accommodation, and clothing, workers can really get less than two-thirds of what they can get, and the boss may only get half of it when they encounter a black heart!
This is also the result of the government's intention to protect the vulnerable, otherwise the capitalists will be able to trap the workers to death by relying on the loopholes in the contract!
The older capitalists are okay, they know that they need to pay attention to their faces, and the government keeps a close eye on them, and the media still likes to carry out raids, so they dare not mess around for the sake of fame.
The worst are the small bosses and nouveau riche, and it is difficult to see the good qualities of the Bulgarians in them. It's a pit by one, and after the government cracks down, they turn to pit immigrants!
Konstantin was silent, trying to convince the military to agree to sell the government's land, unless the government agreed to increase the proportion of military spending, otherwise the military would definitely not agree!
However, increasing the proportion of military spending in fiscal revenue, the government suffers even more, and the growth rate of land income is negligible, but the financial revenue of the Bulgarian government is growing at a high speed!
It is easy to increase the proportion of military spending, but it is even more difficult to reduce it. There is not much else in the Balkans, but there are many wars, and Konstantin does not think that he can do it if he wants to reduce military spending.
The people sitting here were all at the top of the government, and it was clear that Bulgaria's next strategic goal was the Ottoman Empire.
In the short term, there is no problem in increasing military spending, and they are willing to allocate special military spending in wartime. However, the long-term increase in the proportion of military spending is a headache.
You must know that in order to reduce the proportion of military spending, the government's land, such a large piece of fat, the previous cabinet did not hesitate to throw it out, just for long-term consideration.
Chekov thought for a moment and said, "This matter is too big, let's report it to the Grand Duke for a decision!" ”
Everyone nodded, now Ferdinand was in full swing in Bulgaria, and on big issues, without his nod, it would have been impossible to pass.
Ferdinand, who worked hard in the palace of Sofia and worked hard to create a man, did not know that trouble had come to him again.
You must know that since 1892, half of the problems of the Bulgarian government have been financed!
It can only be said: no money in this world is absolutely impossible!
Ferdinand deeply understood the essence of this sentence! Before the crossing, he was a poor dick, and then he was running around for money; After crossing, I was rich and rich, I thought I could get rid of the trouble of money, but I didn't expect to work hard to make money!
After becoming the king, he lived a few comfortable days, and he was worried about money, and he still couldn't see the end of his worries!
After listening to Prime Minister Konstantin's introduction, 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 veto!
In any case, the Ottoman Empire is about to be attacked, and anything that might hurt the morale of the military cannot be done by the government now!
Even if you want to sell land, you can only think about it after the war is over. As for the lack of money for the government, Ferdinand decided to make up his mind with the French, and the name of the usury empire was not in vain!
With the victory of the Bulgarian War, the Bulgarian government's international credit strength has been raised by another notch, and if it is really not possible, you can ask the Russian Empire to come forward to guarantee it!
The government's funding gap may be astronomical for Bulgaria, but it is a drop in the bucket for the usurious empire of France.