Definition
Fiscal crisis occurs when a polity's ordinary revenue mechanisms can no longer sustain its obligations, especially under the pressure of war, debt servicing, administrative inefficiency, and political resistance to reform.
Why it matters
It often acts as a hinge between military competition and constitutional or revolutionary change.
Cross-cutting examples
- War debt producing reform pressure
- Credit experiments and speculative collapse under state pressure
- Elite resistance to new taxation
- Financial breakdown forcing wider political consultation