The film's production began in 1941 with an initial budget of over 4.5 million Reichsmarks (ℛℳ) that increased to over 6.5 million ℛℳ, after Goebbels' intentions to "surpass the special effects and color artistry" of Alexander Korda's Technicolor filmThe Thief of Bagdad [REF].
The budget for the film allowed von Báky and his production staff nearly limitless opportunities to display the superlative nature of Kästner's vision of Baron von Münchhausen.