What is a Fiscal-Military State?


A fiscal-military state is a state that bases its economic model on the sustainment of its armed forces, usually in times of prolonged or severe conflict.

Characteristically, fiscal-military states will subject citizens to high taxation for this purpose.


In the past, states such as Spain, the Netherlands and Sweden, which were embroiled in long-lasting periods of war for local or global hegemony, were organised as fiscal-military states. The British East India Company also employed military fiscalism in maintenance of rule in India in the mid-18th century. Colonial powers generated their revenue for the maintenance of the army. Currently there are few states that could be described as fiscal-military states, which is probably due to the decline of large scale international conflicts in recent times.


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