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.[1]

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 organized 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.