structural:expansion, quality:correction
Institutional

Maria Theresa was as conservative in matters of state as in those of religion, but she implemented significant reforms to strengthen Austria's military and bureaucratic efficiency. She employed Friedrich Wilhelm von Haugwitz, who modernised the empire by creating a standing army of 108,000 men, paid for with 14 million florins extracted from crown lands. The central government was responsible for funding the army, although Haugwitz instituted taxation of the nobility, who had never before had to pay taxes. Moreover, after Haugwitz was appointed the head of the new central administrative agency, dubbed the Directory, (Directorium in publicis et cameralibus) in 1749, he initiated a radical centralization of state institutions down to the level of the District Office (Kreisamt). Thanks to this effort, by 1760 there was a class of government officials numbering around 10,000. However, Lombardy, the Austrian Netherlands and Hungary were almost completely untouched by this reform. In the case of Hungary, Maria Theresa was particularly mindful of her promise that she would respect the privileges in the kingdom, including the immunity of nobles from taxation.

In light of the failure to reclaim Silesia during the Seven Years' War, the governing system was once again reformed to strengthen the state. The Directory was transformed into the United Austrian and Bohemian Chancellery in 1761, which was equipped with a separate, independent judiciary and separate financial bodies. She also refounded the Hofkammer in 1762, which was a ministry of finances that controlled all revenues from the monarchy. In addition to this, the Hofrechenskammer, or exchequer, was tasked with the handling of all financial accounts. Meanwhile, in 1760, Maria Theresa created the Council of State (Staatsrat), composed of the state chancellor, three members of the high nobility and three knights, which served as a committee of experienced people who advised her. The council of state lacked executive or legislative authority; nevertheless, it showed the difference between the form of government employed by Maria Theresa and that of Frederick II of Prussia. Unlike the latter, Maria Theresa was not an autocrat who acted as her own minister. Prussia would adopt this form of government only after 1807.

Maria Theresa doubled the state revenue from 20 to 40 million florins between 1754 and 1764, though her attempt to tax clergy and nobility was only partially successful. These financial reforms greatly improved the economy. After Kaunitz became the head of the new Staatsrat, he pursued a policy of "aristocratic enlightenment" that relied on persuasion to interact with the estates, and he was also willing to retract some of Haugwitz's centralization to curry favour with them. Nonetheless, the governing system remained centralised, and a strong institution made it possible for Kaunitz to increase state revenues substantially. In 1775, the Habsburg monarchy achieved its first balanced budget, and by 1780, the Habsburg state revenue had reached 50 million florins.