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the rise of romania

In 1889, a boy was born in Peres Palace in Romania. Blessed with knowledge of the distant future, join him on his journey, lifting Romania from the balkans to the top of the world and never looking back.

builder_of_empires · History
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94 Chs

Budget

Recently, Edel had the guards hang a large world map in his office, a constant reminder of Romania's precarious position, wedged between the Entente and the Alliance. The country's situation was hardly better than that of the other Balkan states. Edel had specific territorial ambitions: he wanted Transylvania and Bessarabia, regions with Romanian majorities, to be recognized as part of Romania. However, neither the Entente nor the Alliance would likely agree to this. Transylvania was currently under the control of the Austro-Hungarian Empire, and Bessarabia was occupied by Russia. Even the proudest Romanian had to concede that their nation was not in a position to challenge either of these powers.

Edel's strategy was to wait for opportune moments: for Russia to be preoccupied with Ulyanov's takeover and for the Austro-Hungarian Empire to be on the brink of collapse. He also anticipated the defeat of Germany. At such a juncture, with major powers in disarray, a power vacuum would emerge in Eastern Europe and the Balkans. Although this window might close with the rise of the Soviet Union and the rearming of Germany, Edel believed that Romania could capitalize on the interim to possibly ascend as an imperial power.

Understanding the importance of accurate data for strategic planning, Edel had emphasized the significance of the national statistics to the government's statistics department. The latest results were a testament to his insistence on precision—the data was meticulously detailed.

Since the statistical overhaul at the end of 1910, Edel had transferred the responsibility of statistics to the government, which led to the establishment of a dedicated statistical department. Now, over 300 individuals were employed full-time in this department. The recent statistics showed that Romania's GDP had reached 6.301 billion lei this year, a 6.5% increase from 5.917 billion lei at the end of 1912, though the growth rate had slowed. The inclusion of data from newly acquired Bulgarian territories next year was expected to boost these figures significantly.

The primary reason for the deceleration in economic growth was attributed to the automobile manufacturing industry, which had previously been a robust pillar. Despite Volkswagen reaching a new export high of 521,500 complete vehicles, the growth was a mere 3.8% over the previous year, signaling a weakening in the export volume. The European auto market had expanded to 3.7 million vehicles, an increase of 6.7%, but over half of the new vehicles were produced by other European manufacturers, particularly noticeable in France and Italy where Renault and Fiat had expanded production facilities and increased car tariffs.

Previously, auto tariffs were at 15.7%, but lobbying by car manufacturers led to an increase of 5-10% across various countries. Romania, which imported less from France and Italy, found itself without effective countermeasures against these tariff hikes, which significantly favored local manufacturers in those countries. Consequently, the growth rate in these nations reached up to 10%, while Germany, Austria-Hungary, and Russia saw smaller increases due to different vested interests.

Despite these challenges, Volkswagen maintained a competitive edge, securing a 68% share of the European auto market. The export of auto parts also saw substantial revenue, benefiting from the existing market size, with exports totaling 64.123 million lei by the end of the year.

The oil industry was another significant sector, with European oil consumption reaching 8.65 million tons. Oil from Persia and Baku in Russia accounted for 41% of the market, while Romanian oil, backed by government and royal funds, held an 18.7% share. The remainder was dominated by American Petroleum, previously controlled by Standard Oil. Following the breakup of Standard Oil, Edel and the Romanian government had negotiated to repurchase the 12.5% stake Standard had held in the Romanian Petroleum Company, investing 45 million lei for the acquisition.

Besides automobiles and oil, traditional grain exports continued to be a major economic driver. Romania's grain exports reached a record 3.17 million tons this year, with corn, primarily used as livestock feed, accounting for 1.36 million tons. Wheat exports, however, decreased to 874,000 tons, indicating a higher domestic consumption reflecting an improvement in the quality of life for Romanians. Sugar beets, used for sugar production, were almost entirely consumed domestically, further underscoring the enhanced living standards.

Despite the slower growth in food and automobile exports, Romania's total export volume reached a new high of 1.378 billion lei, with imports also peaking at 1.198 billion lei. The government's fiscal revenue reached 612 million lei, with import and export tariffs contributing the most at 147 million lei. Industrial and commercial taxes followed at 67.4 million lei, with agricultural tax at 48.7 million lei.

Edel, lacking a background in taxation from his previous life, was not familiar with the more modern tax systems that had yet to be introduced in Romania. However, he recognized the importance of keeping abreast of popular taxation models used internationally.

Edel carefully reviewed the fiscal budget for the year 1914, a crucial document outlining Romania's financial allocations and priorities. The most significant portion of the budget was dedicated to the military, reflecting the nation's recent involvement in the Second Balkan War which had escalated military expenditures to a record 261.24 million lei in 1913. However, the 1914 military budget was set at 128.5 million lei, significantly lower than the previous year's wartime budget but still the highest among all governmental expenditures. This reduction was primarily due to the subtraction of war-related expenses amounting to 151.42 million lei.

The additional funds from the previous year had partially been used to form two new divisions, a costly endeavor that had contributed to the high expenditure. After accounting for these expenses, the remaining funds were allocated for replenishing ammunition reserves, adding six 105 howitzers per division, purchasing new equipment, and covering army training expenses. These allocations were essential to maintain the military's readiness at levels similar to 2013.

Recognizing the strategic importance of a robust military, Edel noted that the government had set aside a historically high emergency fund of 55 million lei. This fund was primarily intended for financial contingencies that Prime Minister Bretianu might need to manage newly occupied territories and prepare for potential natural disasters.

After scrutinizing the military budget, Edel shifted his focus to the second largest allocation in the government's budget: education. Romania prioritized education with a substantial budget of 115.4 million lei, a reflection of the country's commitment to improving educational standards. The majority of this budget was directed towards the six-year compulsory education program, though there were notable increases in funding for secondary schools and universities as well.

The Ministry of Education was considering the establishment of an additional university to accommodate the rising number of students seeking higher education, propelled by Romania's growing economic strength and the increasing expectations of citizens regarding their children's education. At the end of 2013, Romania had 8,946 university students enrolled in six universities, which were operating at full capacity. Any further increase in student numbers would strain existing resources, including faculty and infrastructure.

The landscape of Romanian education had seen significant changes, particularly at the middle school level. Before 1905, only about 2.5% of students who completed the six-year compulsory education proceeded to middle school, with the majority returning home to work and alleviate their families' financial burdens. By 1914, this figure had more than doubled to 5.7%, a testament to Romania's developmental progress. However, this was still modest compared to Bulgaria, which boasted a middle school enrollment rate of 17.2%, the highest in Europe.

Turning his attention to public infrastructure, Edel reviewed the third-largest budget item, which totaled 87.6 million lei. This allocation included plans for constructing 217 kilometers of new railways and maintaining or reconstructing an additional 458 kilometers. The major new railway project would stretch from Iasi to Bucharest via Bacau, Foknesha, and Buzau, facilitating travel for local residents and strategically enhancing military mobility towards the Austrian-Hungarian front. This project was already a year into construction and was expected to be completed within the next two and a half years.

Railway maintenance and renovation were also crucial, as many of Romania's rail facilities, built in the 1970s and 1980s, were now outdated and in disrepair. With ample government funding, 34.1 million lei was allocated for these purposes in the current year's budget.

In addition to railways, road construction was another significant expenditure. With roads connecting all counties and ongoing plans to upgrade these with asphalt, the budget allocated 31.45 million lei for these projects. This was part of a broader ambition to improve Romania's 11,500 kilometers of roads, 63% of which were still unpaved dirt or gravel paths.

The budget for seaports and inland river docks was also substantial, with an estimated 9 million lei allocated, particularly focusing on enhancing the river transport terminal in Giuliju County along the Danube. This project aimed to transform the terminal into a major transportation hub, increasing the cargo volume along the river.

After reviewing the public facilities budget, Edel moved on to healthcare, where the government had earmarked 51.1 million lei to enhance medical services across the counties. This included significant private and corporate contributions, exemplified by the construction of Constanta's second National Hospital. This facility, the largest in the country, was a collaborative effort between the local government, Volkswagen, and Romanian Steel, totaling an investment of 7.54 million lei. The hospital was planned to house 800 beds and employ over 120 medical staff, including senior doctors from Britain and Germany, aiming to achieve the second-highest level of medical technology in Romania, following only the royal hospital in the capital.

In addition to healthcare, Edel reviewed budgets for agricultural water management, scientific research and development, and resource exploration. Satisfied with the allocations and their alignment with national priorities, he signed off on the budget, officially endorsing the government's financial plan for 1914.

While Edel was aware of the potential behind-the-scenes negotiations that might have influenced the budget's final form, his primary concern was ensuring that Romania was well-prepared and well-funded to face the challenges of the upcoming year. As he concluded his review, his thoughts briefly turned to personal matters, reminding himself of the steamed bun he was looking forward to enjoying upon returning home, even though his work might slow down during his travel.