th the budget of each state of the Dual Monarchy,
there is a common budget, which comprises the expenditure necessary for the
common affairs, namely for the conduct of foreign affairs, for the army,
and for the ministry of finance. The revenues of the joint budget consist
of the revenues of the joint ministries, the net proceeds of the customs,
and the quota, or the proportional contributions of the two states. This
quota is fixed for a period of years, and generally coincides with the
duration of the customs and commercial treaty. Until 1897 Austria
contributed 70%, and Hungary 30% of the joint expenditure, remaining
after-deduction of the common revenue. It was then decided that from 1897
to July 1907 the quota should be 66-46/49 for Austria, and 33-2/49 for
Hungary. In 1907 Hungary's contribution was raised to 36.4%. Of the total
charges 2% is first of all debited to Hungary on account of the
incorporation with this state of the former military frontier.

The Budget estimates for the common administration were as follows in
1905:--

_Revenue_--
Ministry of Foreign Affairs L21,167
Ministry of War 305,907
Ministry of Finance 4,870
Board of Control 18
The Customs 4,780,000
Proportional contributions 15,650,448
-----------
Total L20,762,410
===========

_Expenditure_--
Ministry of Foreign Affairs L485,480
Ministry of War:--
Army 12,679,160
Navy 2,306,100
Ministry of Finance 177,000
Board of Control 13,250
Extraordinary Military Expenditure 4,785,500
Extraordinary Military Expenditure in Bosnia 315,920
-----------
Total L20,762,410
===========

The following table gives in thousands sterling the joint budget for the
years 1875-1905:--

_Expenditure._

187