The issuance of a large number of war treasury bonds has also caused the total treasury debt of the Daheng Empire government to skyrocket!
Before the World War, there were actually only a handful of Daheng Empires, with only a few hundred million yuan in national debt.
However, due to the outbreak of the World War, the Daheng Empire continued to expand its military, and finally fought the Heng'ao War. In the process, the Daheng Empire's finances issued and owed a total of more than 10 billion yuan in national debt.
Then they continued to prepare for the Kingdom of Krul. In the past few years, from the twenty-fourth year of Qian Sheng, from the twenty-fifth year to the autumn of the twenty-sixth year of Qian Sheng, more than 10 billion in treasury bonds had been issued before the war broke out. , after the war broke out, more than 10 billion in national bonds were issued one after another.
Today, the total national debt owed by the empire's finances has reached 35.6 billion yuan.
In addition, in order to maintain huge war expenditures, the Daheng Empire has increased taxes many times, levied special war taxes, etc.
But even so, with the financial revenue of the Daheng Empire plus the income from national debt, it is impossible to sustain the huge war expenditures. In the past few years, the so-called Heng'ao war military expenditures calculated by outside economists easily amounted to tens of billions. Yuan... looks scary, but in fact there aren't that many.
The war expenditures of the Daheng Empire seem to be exaggerated, but in fact many of them are not actual expenditures, and many of them are directly converted into some materials or other things consumed by the war.
In addition, even if a lot of military expenditures are spent, it is actually left to the right, especially on ordnance products...
Because the major defense enterprises of the Daheng Empire are all state-owned assets or royal assets, the money is basically poured back and forth.
For example, for a field gun, the arsenal offers a price of 15,000 constant yuan. After the military gives the money, the arsenal has to pay thousands of dollars in taxes after getting the money, and then has to pay thousands of profits to the superior. In the end, the arsenal is left with Some are used to purchase raw materials, pay wages, and upgrade equipment.
The true cost is only a few thousand constant dollars at most, far less exaggerated than fifteen thousand dollars.
\bThere are other statistics on military expenditures that are also nonsense. For example, in the Heng'ao War, just the cost of transporting personnel and materials across the sea was worth billions of dollars. Those idiots in the Navy even used their own transport ships to transport them. Materials are all included in transportation costs...
So the transportation cost is far from that high.
From the perspective of real financial expenditure, the military expenditure of the Daheng Empire is not so terrible.
In the nineteenth year of Qian Sheng, the military expenditure of the Daheng Empire was only a few hundred million yuan. In twenty years, it was more than one billion. In twenty-one years, it was more than five billion. By the time of Qian Sheng's twenty-second year, When the Heng'ao War was at its most intense, actual military expenditures reached more than 18 billion yuan.
Well, in the 20th year of Qian Sheng's reign, the Daheng Empire's total financial expenditure for that year was only more than 20 billion yuan. According to statistics from outside financial scholars, the military expenditure for a year was 89 billion. This is actually It includes many other war expenses, many of which are directly converted...
The same is true now. In the 26th year of the Daheng Empire's reign, it is expected that taxes will increase, especially after the addition of war profits tax. Taxes will increase significantly again. It is expected that the annual income will reach more than 6 billion yuan, and it is expected that this year's The fiscal expenditure is 30 billion hengyuan, of which military expenditure is about 20 billion hengyuan.
The fiscal expenditure gap of more than 20 billion yuan requires war debt to fill the gap.
\u001bThe victory of the Great Battle of Dongji Island undoubtedly further increased the public's confidence in national debt. Even though the national debt interest rate is only a mere 3.0%, and they are all long-term national debt, it is still favored by the public, especially
sought after by financial institutions.
After the naval battle was won, more national debt was sold, which provided more funds to support the expenditure of the war.
As for how to repay the tens of billions of national debts owed in the end...
Naturally, new debts are issued to repay old debts!
As a mature modern empire with a stable financial system, how could it be possible to use one's own money to repay...
Have you ever seen a country that issued a national debt and then foolishly paid it back directly? They issued new debt to repay the old debt.
I can't afford it anymore...
The Daheng Empire has an annual revenue of more than 6 billion, which is awesome. Looking at the entire Blue Star, only the Daheng Empire itself can achieve this fiscal revenue, but compared with the tens of billions of national debt, it is still inferior.
far away.
In addition, the Daheng Empire also used some invisible method to maintain war expenditures, that is, through a certain amount of inflation.
Since the outbreak of the World War, the Daheng Empire seems to be getting stronger and stronger, but the actual consumer goods index has quietly doubled.
This is very secretive and is done slowly through channels that ordinary people don’t understand.
For example, increase currency circulation and lower loan thresholds.
Then the total amount of loans in the Daheng Empire more than doubled during the war, and the total amount of currency in circulation also more than doubled.
The Seventh Dynasty of the Daheng Empire learned from the lessons of the Sixth Dynasty, in order to avoid huge war expenditures that would directly drag down the finances and cause domestic turmoil.
Countless financial and economic experts in the Seventh Dynasty tried their best to come up with a huge and complicated financial plan.
It is not only necessary to maintain the expenditure of the war, but also to prevent the people from feeling too much tax oppression.
Anyway, this time, the Seventh Dynasty was not as stupid as it was during the Sixth Dynasty. It was directly open to the public, especially raising taxes on individuals. That was pure stupid behavior.
During this war, the Daheng Empire did not obviously increase taxes on individuals, but directly increased taxes on the circulation of goods. Ordinary people did not even know that the empire's finances had quietly increased taxes...
\bBut then again, although the tax burden on the people of the Daheng Empire has increased a lot, it is still much better than the people of other countries participating in the war.
The enemies of the Daheng Empire, the Kingdom of Krul, had already implemented some material control and distribution systems a few years ago. In order to ensure food supply, they had even banned alcohol altogether, because wine making consumes a lot of food.
\bEven for food, they have already distributed it in limited quantities early on, because according to conventional food consumption levels, the local food production on Kingdom Island cannot fully meet the huge consumption of the hundreds of millions of people on Kingdom Island.
The Kingdom of Krul has always been the largest food importer on Blue Star.
The war period was no exception. Before the Andorian naval battle, they imported grain worth more than a billion dollars from the Daheng Empire every year.
But after the Andorian naval battle broke out, they cut off the channels to obtain food from the Daheng Empire. Not only the Daheng Empire, but also other countries in the Central Continent and the Southern Continent also stopped providing food and other strategic materials to the Kingdom of Krul.
.
Since that time, the Krul Kingdom has begun to implement a strict food rationing system comparable to that of the Kokel Empire.
This is the case in the Kingdom of Krul, and it is better not to go there in other countries. Many countries are already severely short of food, and countless people are starved to death or even starve to death.
Compared with these countries, the lives of the people of the Daheng Empire are much better!
At least, even if everyone in Blue Star starves to death, the people of Daheng will not go hungry!