For the administration of these common affairs there are three joint ministries: the ministry of foreign affairs and of the imperial and royal house, the ministry of war, and the ministry of finance. It must be noted that the authority of the joint ministers is restricted to common affairs, and that they are not allowed to direct or exercise any influence on affairs of government affecting separately one of the halves of the monarchy.

The minister of foreign affairs conducts the international relations of the Dual Monarchy, and can conclude international treaties. But commercial treaties, and such state treaties as impose burdens on the state, or parts of the state, or involve a change of territory, require the parliamentary assent of both states. The minister of war is the head for the administration of all military affairs, except those of the Austrian Landwehr and of the Hungarian Honveds, which are committed to the ministries for national defence of the two respective states. But the supreme command of the army is vested in the monarch, who has the power to take all measures regarding the whole army. It follows, therefore, that the total armed power of the Dual Monarchy forms a whole under the supreme command of the sovereign. The minister of finance has charge of the finances of common affairs, prepares the joint budget, and administers the joint state debt. (Till 1909 the provinces of Bosnia and Herzegovina were also administered by the joint minister of finance, excepting matters exclusively dependent on the minister of war.) For the control of the common finances, there is appointed a joint supreme court of accounts, which audits the accounts of the joint ministries.

Budget.—Side by side with 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

£21,167

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

£20,762,410

—————

Expenditure—

Ministry of Foreign Affairs

£485,480

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

£20,762,410

—————

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

Expenditure.

1875. 1885. 1895. 1900. 1905.
Ministry of Foreign Affairs 396 368.7 333 433.4 493.8
Ministry of War (Army and Navy) 9005.4 10,085 12,539 13,887.5 18,087.7
Ministry of Finance 154.2 167.2 170.4 175 177.1
Supreme Court of Accounts 10.5 10.6 10.7 12.5 13.3
Total 9566.1 10,631.5 13,053.1 14,508.4 20,430.3

Revenue.

For the above Departments 432 258.2 260.7 260.3 331.9
Customs 997.4 402.2 4476 5202.3 4799.7
Proportional Contributions 8136.7 9971.1 8316.4 9045.8 15,650.4
Total 9566.1 10,631.5 13,053.1 14,508.4 20,430.3