Sustainable Defence Economics: Evaluating the Impact of Public Sector Financing Models on National Security Outcomes

This paper explores the intersection of public finance and defence strategy through the lens of sustainability, focusing on how various public sector financing models influence national defence performance and resilience. Drawing from theoretical frameworks in institutional and defence economics, this study assesses how funding architectures – ranging from to tax-based to debt-financed models-shape the strategic and operational effectiveness of national defence systems. A comprehensive literature review reveals a growing but fragmented body of research on fiscal sustainability in defence, underscoring the need for a more integrated analysis. Methodological approach combines qualitative institutional analysis with quantitative assessments of defence outcomes, using comparative case studies to illustrate variation in performance across different financing regimes. Key findings suggest that the alignment between fiscal strategy and defence planning is critical for long-term sustainability, particularly in the face of evolving security threats and economic volatility.