Abstract
Fiscal federalism mirrored the multi-tiered system of late Imperial Austria. Financial flows were directed to the Empire and both of its dualistic halves, Hungary and Austria, but also to Crownlands and municipalities in the Austrian half (Cisleithenia). Increasing expenditures for welfare, infrastructure, and schooling helped forge new models of revenue sharing. The article focuses on financial negotiations between the Crownlands and the Ministry of Finance after 1905. Informal conferences addressed financial allocation as a problem of solidarity and loyalty. Horizontal loyalty and cooperation between the Crownlands was meant to strengthen the vertical axis between the Empire and its regions. However, the Empire held on to the separation between the regions and enforced a lack of communication among them, thus gambling away the chance of imperial integration.
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