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The need to pay troops increases demands on the state's budget because military expenditures are often substantial and require significant financial resources. At the same time, declining production reduces tax revenue, leading to a budget deficit where expenses outpace income. This creates a strain on the state's finances, as it must find a way to fund military obligations while grappling with diminished revenue streams. As a result, the state may face challenges in maintaining other critical services and investments.

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