 As in the mid-1930s the Spanish GDP was much smaller than the Italian, French or British ones, and as in the Second Republic the annual defence and security budget was usually around $0,13bn (total annual governmental spendings were close to $0,65bn), wartime military expenditures put huge strain on the Spanish economy.Financing the war posed enormous challenge for both the Nationalists and the Republicans.The two combatant parties followed similar financial strategies; in both cases money creation, rather than new taxes or issue of debt, was key to financing the war.