The Military spending space functions as a maximum spending limit. It prevents unrealistic spending on weapons. The spending space depends on the difference between income and cost and it increases if the country has a larger positive balance. It also depends on the population of the country and higher population numbers result in a larger spending space. Although military spending can be increased, the danger of overspending increases too. Counties can get into large debts and bankrupt. Check the Military spending space and tune contracts to fit the budget.
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