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Civil wars present states with uniquely challenging economic choices. While a state’s primary focus is on achieving military victory and survival, it must balance an increased need for state services during periods of unrest. The onset of civil war can result in a breakdown of government services, paired with an increase for demand for those services due to displacement and conflict, as well as competition for legitimacy with rebel groups competing to provide similar services. Failure to adequately address the needs of their citizens, and rely too heavily on military force, can undermine the government’s survival, in turn serving as recruitment tool for rebel groups. With limited resources, how then do states balance these increased demands during the strain of civil wars? How effective are their strategies? To answer this question, we examined state budgets before, during, and after civil wars, to analyze the impact of civil wars on security and social spending. The results indicate that while states do increase the percentage of military spending during civil wars, social spending also increases in absolute terms even as resources dwindle, and increases in social spending are associated with government victories. We conclude with the implications of this study on the civil war literature, and suggestions for future research into the topic of civil war spending and economic management.