There are two sections which appear in your kingdom report beginning on turn two which are intended to be your primary guides to wise economics. The first of these sections is the revenue and expense breakdown listed under "Affairs of State" in your kingdom report. This listing expresses all expenditures as a percentage of the total wealth spent as well as all Revenues as a percentage of total revenue. Use this section to balance your spending by examining the revenues and expenses of each turn in relation to the overall condition of your treasury as reported in the "Royal Treasury" section of your kingdom report.
Most headings in the revenue and expense breakdown should be self explanatory. However, two expense headings deserve a special mention. Basic troop maintenance cost denotes the basic (unalterable minimum) cost to maintain all troops in your kingdom. Encampment cost per province denotes the extra amount of wealth spent on troop maintenance (above and beyond the basic cost) for quartering large numbers of troops in the same province. Encampment cost rises dramatically as more troops are stationed within a particular province.
Example of play - Kingdom X discovers that after a very short peace years turn
(only 2 years of game time) and much military expenditure, the level of the
royal treasury was reduced from a Superior rating to Excellent. Kingdom X is
satisfied that at present expenditures it can survive 4 war seasons without
significant hardship. However, noticing that 90% of all expenses were for
troop maintenance and that two large armies are located in the same province,
Kingdom X decides to move one army out of the province by invading a
neighboring province. Kingdom X believes that by dispersing its troops it
should reduce troop maintenance costs significantly and therefore provide for
the treasury to last even longer than 4 war seasons. Calculations of this
kind are generally made Peace Years to Peace Years since at the next peace
years the treasury should be replenished. Kingdom X's next kingdom report
will give it an even better idea of how its economic plans are proceeding
through further examination of the troop maintenance percentage and treasury