Chapter 865 National Budget System
This is also the reason why Prussia was the first to withdraw from the war - if it continues to fight, it will make the country go bankrupt.
In fact, Prussia has been able to survive until now, all it depends on the funds provided by the UK.
When Brian saw the prince turn the page, he immediately said: "Your Highness, the total expenditure in the first ten months of this year is 650 million francs, and the annual expenditure is expected to be 800 million francs. That is to say, a deficit of 30 million francs will be generated."
After Joseph took office, France had a fiscal surplus for two consecutive years, with a surplus of up to 100 million francs last year.
This year, under the huge consumption of the war, a situation of not being able to make ends meet again.
Joseph looked at the total debt of the country at the bottom of the statement, 1.87 billion francs.
He smiled indifferently and said to Brian: "my country's domestic production has not been seriously disturbed, and the Iberian-Apennine Common Market can bring greater sales to the factory. I believe that our revenue and expenditure situation will be reversed soon after the war is over."
What he did not say is that France will most likely win this war, and will receive high war reparations, plus various war dividends, and fiscal revenue will definitely increase significantly.
He estimated when he was in the South Netherlands that the war reparations from the Netherlands to the Flemish Republic alone could be reduced by nearly 200 million francs after being transferred to France through various channels!
And there will be no common problems with war reparations - the defeated country will start to refuse payment after paying a small part of it.
About 400 million of France's national debts were borrowed from the Bank of the Netherlands, and Flemish previously stipulated in the armistice agreement that war reparations were used to mortgage debts from Britain, France and other countries.
In other words, if the Netherlands wants to pay back the debt, it will directly deduct France's debt.
Austria can also provide a large amount of war reparations later - Austria is not as poor as Prussia, and Guangrao's empire can squeeze out a lot of oil and water.
Even if the war reparations are not paid, it can help France reduce its debt by 100 million or 200 million.
At that time, France's total debt will be reduced to less than 1.5 billion.
You must know that this is just a direct benefit brought by the war. Later, as a victorious country, there will be a large amount of hidden income.
France will not care about debt issues in a few years.
After understanding the income and expenditure situation in the first ten months, Joseph picked up the "France 1794 Fiscal Expenditure Estimate Report" compiled by the financial system.
He did not expect much from this report, after all, no country would formulate a fiscal budget in this era.
So he asked Brian to convene people from major departments of finance, industry and agriculture to jointly form a budget committee, and start practicing from estimating the national expenditure next year. After accumulating enough talents and experience, he will gradually improve to formulating a budget.
The national financial management of this era is still in a very early stage, and basically fills holes wherever there are holes. When the treasury was out of money, he tried his best to tighten his belt and did not allow him to do anything.
The UK did not start to establish a fiscal budget system until 40 years later. Other countries are even later.
From the perspective of national financial management, it is very important to formulate a budget.
The first thing is to limit unnecessary waste, and you will limit the budget quota to you in advance. If you want to waste it, you will not allocate much money to you.
The second is to urge all departments to improve the efficiency of funding use. The head of the department who exceeds the budget will definitely be punished, and if you save the budget, you will be rewarded. Don’t underestimate the subjective initiative of officials at all levels. Save a little bit everywhere. It is no surprise that the whole country will spend tens of millions of francs in a year.
The most important thing is to strengthen the government's overall management of financial resources. Use limited finances where they are most needed.
For example, in this era, the fiscal budget will definitely tend to develop steam engines and industries related to steam power, coal and steel, so as to drive the entire country to accelerate in this regard.
In fact, the reason why France was able to surpass Britain in steam engines before was that Joseph used his power to implement some state-driven models and used the power of all France to pk Watt a company.
If you can't fight this, then France will stop talking about fighting for Europe.
After implementing the national budget model, this situation of combining national strength to break through certain important areas will become the norm, allowing France and other powerful countries to make greater progress when investing the same funds.
Brien said on the side: "Your Highness, according to the budget committee's estimates, the total fiscal expenditure for next year should be around 850 million francs."
Joseph nodded. This number was roughly reliable, so he opened the Expenditure Estimate Report, but when he saw the total expenditure entry, he immediately frowned.
Recurring project expenditures—that is, official salary, road and bridge maintenance, treasury bond interest, etc.—accounted for 50%.
Government investment expenditure—that is, water conservancy construction, road paving, etc.—accounts for 4.5%.
Industrial and technological development expenditures—mainly industrial development funds, as well as national-level technology research and development—accounted for 8%.
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Government service-oriented expenditures—that is, education, relief, etc.—accounted for 1.5%.
...
Joseph immediately turned back and looked at the details of the industry and technology development expenditure that he was most concerned about, and saw that the annual investment of the Industrial Development Fund was less than 35 million francs.
The projects involved are mainly concentrated in five important areas: steam engine, automatic textiles, and chemicals, and there is no expenditure in any emerging fields.
He immediately raised his hand to interrupt Brian, who was still talking nonstop, and looked at the Minister of Industry: "Count Mirapo, I remember that I should have mentioned to you that I will invest heavily in the inland shipping industry and postal communication industry next year, but the Industrial Development Fund does not have this plan?"
"Yes, Your Highness, you did say that it has been more than once." Mirabo rubbed his hands in embarrassment, "But, the financial expenditure is limited, and it is necessary to give priority to the industry such as steam engines and steel smelting. Other aspects are not enough..."
Joseph asked in confusion: "The total expenditure of 850 million francs should be divided into at least 100 million in industrial development. Why is it not enough?"
Mirbo glanced at Brian and said, "Your Highness, the military expenditure next year must be the most important, so you can only compress the industrial development first."
Joseph quickly turned forward again, and then he saw the last part of the expenditure project: military expenditure, accounting for 36%.
He roughly calculated that the total expenditure of 850 million yuan is more than 300 million francs!
He frowned and shook his head and said, "The military expenditure should not be used so much, right?"
You must know that after half a year of full-scale war this year, the military expenditure is only about 140 million yuan. Does Brian think that there will be a whole year of national war next year?
(This chapter ends)