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Russia was in a continuous state of financial crisis. While revenue rose from 9 million rubles in 1724 to 40 million in 1794, expenses grew more rapidly, reaching 49 million in 1794. The budget allocated 46 percent to the military, 20 percent to government economic activities, 12 percent to administration, and nine percent for the Imperial Court in St. Petersburg. The deficit required borrowing, primarily from bankers in Amsterdam; five percent of the budget was allocated to debt payments. Paper money was issued to pay for expensive wars, thus causing inflation. As a result of its spending, Russia developed a large and well-equipped army, a very large and complex bureaucracy, and a court that rivaled those of Paris and London. But the government was living far beyond its means, and 18th-century Russia remained "a poor, backward, overwhelmingly agricultural, and illiterate country".[35] First half of the 19th century Main article: History of Russia (1796–1855) In 1801, 4 years after Paul became ruler of Russia, he was killed in the Winter Palace in a coup. Paul was succeeded by a his 23-year-old son, Alexander. Russia was in a state of war with the French Republic under the leadership of the Corsica-born consul Napoleon Bonaparte. After he became the emperor, Napoleon defeated Russia at Austerlitz in 1805, Eylau and Friedland in 1807. After Alexander was defeated in Friedland, he agreed to negotiate and sued for peace with France; the Treaties of Tilsit led to the Franco-Russian alliance against the Coalition and joined the Continental System.[36] By 1812, Russia had occupied many territories in Eastern Europe, holding some of Eastern Galicia from Austria and Bessarabia from the Ottoman Empire;[37] from Northern Europe, it had ceded Finland from the war against weaken Sweden; it also possessed some territory in Caucasus. Following a dispute with Emperor Alexander I, in 1812, Napoleon launched an invasion of Russia. It was catastrophic for France, whose army was decimated during the Russian winter. Although Napol