The system of classifying the revenue into separate funds has frequently produced annual deficits, which are, as a rule only nominal, since the total receipts exceed the total expenditures.
From 1885-1886 onwards, outlay on public works, military and colonial expenditure, and especially the commercial and financial crises, contributed to produce annual deficits; but owing to drastic reforms introduced in 1894-1895 and to careful management the year 1898-1899 marked a return of surpluses (nearly 1,306,400).
The deficits in the imperial budget, however, continued.
Excepting the in creases of deficit in 1868 and 1870, the annual deficits tended thence forward to decrease, until in 1875 equilibrium between expendituri and revenue was attained, and was maintained until 1881.
During the same period the assumption of the Venetian and Roman debts, losses on the issue of loans and the accumulation of annual deficits, had caused public indebtedness to rise from 92,000,000 to 328,000,000, no less than f 100,000,000 of the latter sum having been sacrificed in premiums and commissions to bankers and underwriters of loans.