Situados

Situados were a system of regular subsidies or advances provided by the Spanish Crown to its overseas possessions to cover deficits between local revenues and the costs of governance, defense, and church establishment. The term refers to a fixed allocation or transfer intended to keep colonial administrations functioning in territories where income from taxes and duties was not sufficient to meet expenses.

The mechanism varied over time. In practice, situados could take the form of annual remittances, loans, or fixed appropriations sanctioned by the Crown and intended to be repaid or balanced by future revenues. In return, colonial authorities were expected to manage and maximize revenues within their jurisdiction, sometimes contributing a portion of taxes or other payments to the Crown or ensuring particular services and defenses were maintained. The system was used to support administrations in major viceroyalties such as New Spain and Peru, as well as other territories in the Americas and the Philippines, where local tax income often lagged behind fiscal needs.

Fiscal tensions surrounded the practice. While situados helped sustain distant governments and fortifications, they fostered financial dependence on the Crown and on inter-colonial transfers. During the Bourbon reforms of the 18th century, the Spanish state sought to reduce reliance on situados by reorganizing finances and strengthening autonomous revenue sources, though they remained a significant instrument of imperial governance in the early modern period.

See also: Bourbon Reforms, Real Hacienda, Viceroyalty, Philippines.