Ironically enough, you're talking about a totalitarian theocracy.
It's very hard to maintain a pacifist state per se; after all, there's always some form of competition and someone is always likely to take things too far. There is evidence that democracies are far less likely to engage in warfare because you have to convince the masses as to the rightness of the cause before you invest the resources necessary to engage an enemy, but pacifism is more than a simple avoidance of war. If one takes the true meaning of the term, it's more of an intolerance to anything that impedes a peaceful existence.
This could easily be interpreted as a restriction on competition, and at the state level this means that a free market, capitalistic economy would go against such a concept.
Many religions (especially the 3 Abrahamic ones, Judaism, Christianity and Islam) have a form of socialistic morality baked in. Yes, one could argue that this is because many religions are old, coming from a time before systemic taxation and state based social welfare frameworks, but given that your form of government is spiritual as well as pacific in nature means that even if the state has taken on these reforms before established dogma requiring it is in place, the fact that your state is now in the hands of the religion as well blurs the lines of responsibility in any event.
So; you can expect a socialistic structure and economy, where everyone contributes their efforts to the state who then ensures equitable distribution of the outputs. In order to maintain the pacific trait, this will be a form of meritocracy (promotion based on merit) or geritocracy (promotion based on age) so that there is no real competition. The meritocracy would be preferred as it would lead to a socialistic model instead of a communistic model, which struggles with encouraging and rewarding distinguished personal contribution.
Your people will be obedient to state direction because that is the correct moral course. They will have an efficient organisation of labour that does not have multiple people competing against each other in a specific industry, and standouts will be invited to 'serve' in positions of authority.
That said; dissent will be dealt with harshly. It's not only a crime, it's a sin. As they're pacifists, there's probably no death penalty but they could likely be assigned 'hard labour' tasks under a penal arrangement.
One would hope that the government would be benign, and have the interests of the people at heart. If so, (and assuming adequate resources) the people would likely prosper but this is a fragile structure as it only takes a couple of poor choices close to the top to turn the people against the regime.
Take a look at groups like the Amish for social structures along these lines, and read Plato's The Republic for some idea about how the regime might be structured. The part about Plato's 'Noble Lie' is particularly conducive to a meritocracy and the structure of his Gold, Silver and Wood classes of citizens was likely a strong influence on George Orwell's Inner Party, Outer Party and Proletariat classes in 1984.
Ultimately, as a dystopia this model is going to be far more fragile than it would be as a utopia, and far more likely to descend into Tyranny.
One of the advantages of a strong separation of Church and State is that one is free to voice an opinion about the administration of a country without it reflecting on one's religious leanings. True, we see a lot of overlap because laws and morals can be strongly aligned, and even have similar intents. A spiritual government however will remove that distinction and the population will go one of two ways; either obedience to the state will be seen as piousness and be encouraged, or the changing needs of the populace will force the religious elements of the state to reform and change meaning that dogma changes to reflect the needs of the people.
A spiritual government is more likely to take the latter path if one differentiates it from a religious government, but this is really a matter for you to interpret for your own needs.