History of Russia deficit required borrowing, primarily from Amsterdam; five percent of the budget was allocated to debt payments. Paper money was issued to pay for expensive wars, thus causing inflation. For its spending, Russia obtained a large and glorious army, a very large and complex bureaucracy, and a splendid court that rivaled Paris and London. However, the government was living far beyond its means, and 18th-century Russia remained "a poor, backward, overwhelmingly agricultural, and illiterate country." Peter I was succeeded by his second wife, Catherine I (1725–1727), who was merely a figurehead for a powerful group of high officials, then by his
Tsardom of Russia also continued and war with Persia brought about the acquisition of territory in the Caucasus, although Russia surrendered those gains after Peter's death in 1725. There was no single flag during the Tsardom. Instead, there were multiple flags: Tsardom of Russia The Tsardom of Russia (, "Russkoje tsarstvo" later changed to , "Rossiyskoye tsarstvo"), Polish-Lithuanian Commonwealth called it Tsardom of Muscovy, was the centralized Russian state from the assumption of the title of Tsar by Ivan IV in 1547 until the foundation of the Russian Empire by Peter the Great in 1721. From 1551 to 1700, Russia grew 35,000 km