Extraordinary Excess Credits in Financing the Bulgarian Army during the Wars (1912–1918) – Trends and Effects

The article presents and analyzes the role and the significance of the extraordinary excess credits to the War Ministry before and especially during the wars (1912–1918), their effects on the army, the finances and the Bulgarian economy. The creation and the structural changes of the national army are inevitably associated with a significant loading of the state financial system. All the reforms and transformations that have taken place over the years required a lot of financial resources. Bulgaria's participation in the three successive wars of 1912–1918 caused a significant increase in the amount of state funds allocated for military purposes. A large part of the military costs are covered by extraordinary excess credits voted by the government. Expenditure on the War Ministry gradually took first place in the structure of the state budget. After the end of the Balkan wars /1912–1913/ and the national catastrophe, the financial and economic situation in the country was unstable. With the involvement and in the course of World War I, the country moved towards wartime regulation of the economy through mobilisation measures in all economic sectors. The need to provide the army with the necessary technical equipment required significant funding from the state. The main source of funds during war time again was extraordinary excess credits. These over-budget credits, granted by the National Assembly reached colossal dimensions for the Bulgarian economy. Undoubtedly, the extraordinary excess credits burden the Bulgarian financial system, but it is fair to underline the fact that they stand out as an appropriate instrument capable of covering the rapidly growing military expenditure.