 In the Republican zone fiscal revenues in 1937 dropped to some 25% of revenues recorded in the proportional area in 1935, but recovered slightly in 1938.Neither side re-engineered the pre-war tax system; differences resulted from dramatic problems with tax collection in the Republican zone and from the course of the war, as more and more population was governed by the Nationalists.A smaller percentage of domestic resources came from expropriations, donations or internal borrowing.