Chapter 607 System Reform

After Christmas, Franz was busy again. There are always many things at the end of the year, the government's year-end summary, the plan for the coming year, the financial budget...

The people below are responsible for specific things, but Franz still has to control the general direction. As a qualified emperor, you must ensure control over the government.

Chancellor of the Exchequer Carr: "Your Majesty, this is this year's revenue and expenditure report.

The total fiscal revenue of the New Holy Roman Empire in 1875 was 865.2 billion Aegis, total expenditure was 876.4 billion Aegis, and the fiscal deficit was 1.12 million Aegis.

In 1875, Austria's total fiscal revenue was 157.41 million Aegis, the total fiscal expenditure was 155.04 million Aegis, and the fiscal surplus was 2.37 million Aegis.

The total fiscal revenue of Bavaria in 1875 was 11.32 million Aegis, the expenditure and revenue were basically the same, and the fiscal balance was balanced.

In 1875, the financial revenue of the Kingdom of Jerusalem was 220,000 A.D., and the fiscal expenditure was 3.14 million A.D., and the deficit was 2.92 million A.D. "

Although the Austrian government is the central government of the New Holy Roman Empire, it is still financially separate.

If the finances are not separated, the central government will have a deficit, but there is no way to ask for money from the state governments.

Not only is it financially divided, but in fact the functions of the two are different.

The Austrian government is mainly responsible for the governance of Austria, such as: tax collection, maintenance of social order, economic development, education, infrastructure construction... These are all confined to the Austrian region.

The central government is different. These specific administrative matters are the functions of the governments of various states and do not require their intervention.

However, the central government is responsible for the entire new Holy Roman Empire. Its main functions include: mediating relations between states, formulating laws, judicial institutions, conducting diplomatic work, training and managing the army, issuing currency, collecting tariffs, and managing colonies...

The fiscal revenue of the central government is not as high as that of the states, which is also normal. In addition to the income of the colonies, the central government only has seigniorage and customs duties.

The large area of ​​the colony does not mean that the fiscal revenue is also high. Now it is considered good, and it can basically achieve a balance of payments, and there is still a slight balance.

However, this balance only exists on paper. After the central government has a hand, it is consumed by local construction projects.

In the early years, the central government had a serious deficit, and the state governments had to share the fiscal deficit together. It's always difficult to get money out of someone else's pocket.

At that time, the end of the year was the most painful time for the Vienna government. It is necessary to patiently do ideological work for the governments of the states and make them willing to pay.

With the development of the colonial economy, the central government no longer needed to subsidize out of pocket, and this changed.

This kind of change is not what the state government wants to see. They don't need to pay for it, and it also means that their status in the empire has declined.

Politics is such a reality, as the central government balances its payments, the merger of the Austrian government and the central government is also on the agenda.

Whether you like it or not, this is the inevitable result. Otherwise, after the colonies are localized, how will they rule?

There is no problem with the central government directly administering the colonies, but if it directly administers the localized provinces, then the political status of these provinces will be equal to that of the state government.

There is no doubt that the African continent is so big, and its future development potential must exceed that of its own.

If integration is not carried out now, the system will be determined. In the future, these provinces will develop, and they will definitely strive for political rights and interests.

If it really goes to the era of democracy and freedom, and the people vote to make decisions, then the European emperor will become a non-emperor, and it will be just around the corner.

At the beginning, the colonies were placed under the flag of the empire, not under the flag of Austria. The main reason was to let all the states pay together, and the second was to have an orthodox status to facilitate immigration in the German region.

Now that all these tasks have been completed, it is time to unload the mill and kill the donkey. Politics is such a reality that Franz has decided to merge the executive powers of Austria, Bavaria, and Jerusalem.

1875 was the last fiscal separation, followed by full consolidation. The government no longer has to go through the trouble of making two budgets.

Franz took the document and looked at it carefully. The year 1875 was about to pass, and it was the first time the Austrian government had a fiscal surplus since he took the throne.

It was a great victory, even for a measly two million Aegis.

A few years before he succeeded to the throne, Franz suffered from financial headaches. It was not until the outbreak of the first Near East War that he got rid of the predicament by making money from the war.

Later, the pace of colonial expansion was accelerated, and the government's finances were also in deficit for many years, and the best time was to break even.

Now is the era of the gold standard, not the era of credit money. To print money, the government must first look at gold reserves.

To play with the fiscal deficit to stimulate the economy, you must first see how much money you have in your pocket. There is no way to make up for the deficit by issuing more money, and long-term deficits will increase government debt.

The government's debt bearing capacity is also limited. Once it exceeds that level, the finances will be crushed.

In this regard, Greece is a negative teaching material. In the front, the government made great efforts to provide welfare without considering the consequences of the fiscal deficit, and then it could only default on its debts.

There is no doubt that the Austrian government also owes a lot of debt. The so-called fiscal surplus only exists on paper, and there is no wave in the face of the huge debt.

After a while, Franz closed the document: "Financial surplus, let's use it to reduce debt! Our debt pressure is still very high. If there is an emergency,

will be very passive. "

At the beginning of the establishment of the New Holy Roman Empire, the small states were worried that the central government would subsidize Austria with the imperial finances, and that they would suffer losses.

In order to reassure everyone, Franz set a rule: the central government shall not borrow externally, and the fiscal deficit shall be shared by the state governments.

The effect is very obvious. The central government does not have enough money to spend on its own. Every year, it reaches out to the state government. Every expenditure is strictly reviewed by everyone, and naturally there is no misappropriation.

In this way, the fiscal deficit of the central government falls on the state governments. Austria has the largest volume and needs to pay the most. Coupled with its own infrastructure investment, the debt has continued to grow.

Today, Austria's total debt has reached 500 million Aegis, nearly 3.2 times its fiscal revenue, which is more than the external debt of the Tsarist government.

Of course, this algorithm is not reasonable, and there are some incomes that are not included in fiscal revenue, but can be used to repay debts.

However, this number is still dangerous. In a period of rapid economic development, it is not a problem, but it must enter a period of economic stability, or even a recession, and problems will arise.

Franz did not mention the budget deficit of the Kingdom of Jerusalem. This was an inevitable result.

All the farmland is fallow, and the city is being re-planned and rebuilt, all of which cost money. If Jerusalem is not a holy place, it is estimated that there is no income of 220,000 Aegis, and it is directly invested.

Chancellor Carl: "Yes, Your Majesty."

After a pause, Carl added: "Your Majesty, our financial consolidation plan has been opposed by the governments of various states, and there may be trouble in the Imperial Parliament."

The merger of the central government and Austria is the general trend, and everyone is prepared. Franz has already discussed with the kings of the various states, and generally everyone has no objection.

There is no problem with the administrative merger, that is, the Austrian government has been part-time central government since the beginning. In essence, the two sides have long been one family.

For the established facts that have been created, the governments of the states know that their objections are invalid. In the case of not harming their own interests, everyone will acquiesce.

But the finances are different. The state governments have been paying to subsidize the central government. After finally achieving the balance of payments, I was picked peaches, and it was uncomfortable for anyone to change.

There is no way to compromise on this issue. If the finances cannot be consolidated, how can the consolidation be accomplished?

After hesitating for a moment, Franz made a decision: "If the governments of the states cannot be persuaded to agree, then the fiscal consolidation will be put on hold.

Let Jerusalem announce the reconstruction plan, and prepare documents at the same time, and apply to join the new Holy Roman Empire at the Empire Conference early next year. "

The Kingdom of Jerusalem has never been part of the Shinra Empire, but no one can object to Jerusalem joining the Shinra Empire.

No Catholic country can deny access to the Holy Land. Otherwise, the spittle of the people will bring down the government.

The addition of Jerusalem to the empire not only increases the voice of a state, but also adds a big trouble.

The Kingdom of Jerusalem is poor, and the rebuilding work has just begun, which will require huge amounts of money. There is no doubt that the Kingdom of Jerusalem itself has no money.

Rebuilding the Holy Land is religiously correct, and after joining the Shinra Empire, this cost fell to the central government. By convention, this money will eventually fall on the heads of state governments.

Franz has made plans to rely on the Holy See to raise funds from all over the world to support the reconstruction of Jerusalem. For this reason, he promised the Holy See the right to govern the city of Jerusalem.

However, this is still in secret negotiations. If the Holy See wants to get the rule of Jerusalem, it must cooperate with Austria to stabilize the entire Middle East region.

This does not prevent him from first using the huge cost of rebuilding Jerusalem to put pressure on the governments of various countries.