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Hindu Administrative Institutions c9.s3: Sec. iii. Items of Expenditure

Hindu Administrative Institutions c9.s3

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Sec. iii. Items of Expenditure

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Economy is the key-note of expenditure by the state, and still the vast total expenditure was very great. The expenditure was, however, for the realization of the three ends of life.¹

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¹ काले चास्य व्ययं कुर्यात् त्रिवर्गपरिवृद्धये । (Kāmandaka, v. 76.)

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The reasons for expenditure are obvious. The functions of the state as analysed in the *Kauṭalīya* necessitated² the maintenance of an elaborate fisc. The following is the categorical list of functions mentioned in the *Arthaśāstra*; the army and navy including other defences of the kingdom against external attacks and internal dangers, the police, justice and law-courts, sanitation, medical relief, public works of utility including irrigation, religion and learning, other allied departments such as standardization of weights and measures, the census, etc., aid to industries and manufactures, and other items of development. With such large political, social, and other functions, it would be reasonable to assume that the expenses incurred by the state were great.

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² *Vide* Prof. K. V. Rangaswami Aiyangar, *Aspects of Polity*, p. 68.

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Śukra, the economist, agrees with Kauṭalya the politician in distinguishing two kinds of expenditure: the every-day expenses which had to be incurred to satisfy the absolutely necessary wants, and expenditure in services of public benefit which are profitable investments in the long run.¹ Referring to expenditure in a general sense Śukrāchārya speaks, of ordinary consumption² or that which is destroyed in the act of consuming, and productive consumption, which is an outlay of expenses on a particular undertaking to yield profit in the long run. The first division includes items of expenditure which are required for every-day consumption and for the running of all departments functioning in the state. These include expenses incurred for the royal household, the harem, the kitchen, storehouse, firewood, fodder, museum of birds and beasts, manufactories, labourers, military establishments, warehouses, civil and other officials, gifts to temples and other charitable institutions, and such other expenses which are essential for carrying on the work of administration.¹

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¹ नित्यो नित्योत्पादिकोलाभो लाभोत्पादक इति व्ययः । दिवसानुवृत्तो नित्यः । पक्षमाससंवत्सरलाभो लाभः । तयोस्तपन्नो नित्योत्पादिको लाभोत्पादक इति । (Arthaśāstra, Bk. ii, Sec. 6.)

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² यन्निमित्तो भवेदायो व्ययस्तन्नामपूर्वकः । व्ययश्चैवं समुद्दिष्टो व्याप्यव्यापकसंयुतः ॥ पुनरावर्तकस्त्वनिवर्तक इति द्विधा । व्ययो यन्निध्युपनिधुकृतो विनिमयोकृतः ॥ (Śukra, ii, 337-38.)

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¹ देवपितृपूजादानार्थं स्वस्तिवाचनमन्तःपुरमहानसं दूतप्रावर्तिमं कोष्ठागारमायुधागारं पण्यगृहं कुप्यगृहं कर्मान्तो विष्टिः पत्यश्वरथद्विपपरिग्रहो गोमण्डलं पशूमृगपक्षिव्यालवाटाः काष्ठातृणवाटश्चेति व्ययशरीरम् ॥ (Arthaśāstra, Bk. ii, Sec. 6.)

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The following civil list is found in the *Kauṭalīya*:

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| | *paṇas.* |
| Annual allowances for *ṛtvik, guru,* minister, *purohita, senāpati,* crown prince, king’s mother and queen.... each | 48,000 |
| For the chamberlain, controller of the house-hold, *praśāstr,* Revenue Officer, *sannidātṛ* .... | 24,000 |
| For other sons of the king, nurse, *nāyaka* (army officer), superintendent of the city, judge, superintendent of manufactures, members of the ministry, superintendents of country parts and of boundaries .... | 12,000 |
| Managers of military corporations, masters of elephants, horses, chariots . . . . . | 8,000 |
| Captains of infantry, cavalry, chariots, and forests . . . . . | 4,000 |
| Chariot-driver, doctor, horsetrainer, carpenter, trainers of other animals. | 2,000 |
| Astrologer, *purāṇa* reader, bards, assistants of *purohita* and all superintendents of other departments . . . . . | 1,000 |
| Soldiers, accountants and clerks .... | 500 |

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Musicians, 250, artisans, etc., 120, servants, etc. .... .... each 60 paṇas. Honorarium for the learned 500 to 1,000. Messenger for a yojana 10, and up to 100 yojanas 20, special officer, 1,000, Intelligence, etc., 500.¹

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¹ Arthaśāstra, Bk. v, Sec. 3.

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It must be remembered that these items constitute the category of consumption, the utility of which consists in satisfying the needs of the day and can be characterized as non-productive consumption. The second division of expenditure is such that returns are expected from it. They are expended perhaps in productive enterprises² such as irrigational works. For this a certain amount was to be earmarked beforehand. Kauṭalya insists on this head of profitable expenditure. For any curtailment under this account would be suicidal to the interests of the state.³ This presupposes the existence of annual budget estimates. Budget-estimates are spoken of to-day as the barometer of the financial organization. It is striking to see that such budget estimates have been in existence in the days of Kauṭalya. A general review of the Kauṭalīya shows notions of control of expenditure by regulating resources. Besides the two broad classifications of expenditure, the Arthaśāstra recommends a provision for emergency purposes (व्ययप्रत्ययः). It is expenditure to meet emergencies when some untoward calamities befall the country, such as the outbreak of war, ravages of epidemics, or huge, useful and productive works already undertaken and yet remain to be accomplished.⁴ This provision is of capital importance, for the state realized that the material well-being of the society was the end of the state. It brought relief to the doors of the poor, the suffering and the diseased,—in a word improved the health of the community. It nationalized industries and manufactures, thus avoiding creation of a capitalist class as in modern industrial society.

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² Śukra, ii. 337-38.

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³ समुदाधिकेष्ववक्लृप्तं व्ययमुपहत्य राजाऽनुतप्येत । (Bk. ii. 7.)

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⁴ विक्षेपयधितान्तरारम्भशेषश्च व्ययप्रत्ययः । Dr. Shama Śāstri's translation seems to be incorrect.

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Again the principle of balancing of the budget was a factor then reckoned very important. Kauṭalya lays down the healthy recommendation, namely, that the minister of finance should endeavour his best to increase the items of income and decrease proportionately the items of expenditure.¹ This simply means that the state must not waste the money on useless and unproductive works. As the treasury is the safety-valve of the state, the authority in power must see that the treasury is always replenished with treasure. There seem to have been limits beyond which, save under exceptional circumstances, the treasury should not be drawn upon.

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¹ एवं कुर्यात्समुदयं वृद्धिं चास्य दर्शयेत् । ह्रासं व्ययस्य च प्राज्ञस्साधयेच्च विपर्ययम् ॥ (Arthaśāstra, Bk. ii, Sec. 6.)

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In short the state must so regulate its expenditure that there might be no difficulty if it were suddenly faced with calamities of one kind or another.² This sound principle is not peculiar to technical literature only. Texts like those of the *Rāmāyaṇa* and the *Mahābhārata* contain similar rules. In the *kacchit sarga* of the *Rāmāyaṇa*³:

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² अलब्धमोहेद्र्मेण लब्धं यत्नेन पालयेत् । पालितं वर्धयेन्नोत्या वृद्धं पात्रेषु निक्षिपेत् ॥ (Yāj., i. 317.)

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³ आयस्ते विपुलकश्चित् कश्चित् अल्पतरो व्ययः अपातेषु न ते कश्चित् कोशो कश्चित् च राघव ।

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एवं कुर्यात्समुदयं वृद्धिं चास्य दर्शयेत् ।
ह्रासं व्ययस्य च प्राज्ञस्साधयेच्च विपर्ययम् ॥
(Arthaśāstra, Bk. ii, Sec. 6.)

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‘Is your income great, is your expenditure proportionately less, is it not wasted on the undeserving, is it spent on gods, ancestors, *śrotriyas*, guests, army and allies?’ Again in chapters xcv and xcvi (*tīrthayātra* section) of the *Āraṇyaka Parvan* there is an interesting episode which throws much useful light on the topic under discussion. The sage Agastya happened to marry and set up a family which meant funds to maintain his establishment. With that object he set out to get honorariums from the kings of the several states. He approached four kings: *Śrutarva* (श्रुतर्वा), *Bradhnaśva* (बध्रश्व), *Trasadasyu* (त्रसदस्युः) and *Ilvala* (इल्वः). Each of them had practically a minus balance in their accounts. They had spent more than what they had got. The accounts were then called for and scrutinized by the sage with an eye to the items of the expenditure. A careful auditing demonstrated that their incomes amounted to only just what they had to spend and nothing to spare even by way of charity. The sage then brought to their notice the necessity of keeping their treasury well-furnished. On his advice it is said that the states were placed thenceforward on an excellent financial basis. The account may or may not be historical. But the fact remains that the balancing of budgets with a reserve earmarked in the treasury was a factor understood and realized in ancient days in Hindu India. It is generally taken that the budget was to be a surplus budget, and not a deficit one.¹ This surplus wealth was to be utilized among worthy persons.

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¹ Yāj., i. 317.

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देवतार्थे पित्रर्थे ब्राह्मणाभ्याऽगतेषु च
योधेषु मित्रवर्गेषु कश्चित् गच्छति ते व्ययः ॥

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(Ayodhya Kāṇḍa, c. 55-56.)

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Sukrāchārya has a budget in which the saving is 18 per cent of the total income and 50 per cent of the total annual land-revenue collections. According to *Śiva Tattva Ratnākara*¹ one-fourth of the total income must be kept as reserve. This reserve ought not to be touched.² Even a small amount should not be discarded. It would grow large, as a small fire would, with the feeding of ghee, and by continuous efforts. The following is the budget estimate of annual expenditure of a small state.³

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¹ > राष्ट्रादायातवित्तस्य चतुर्भागान् प्रकल्पयेत् ।

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² Cf. *Śānti Parvan*, cxix. 16.

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³ i, ll. 631-35 and iv. vii. 47-52.

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The items of expenditure of a state worth one lakh of *karṣas* are monthly:—

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| | | RS. |
| 1. | Personal and charities | .... 1,500 |
| 2. | Six clerks and scribes | .... 100 |
| 3. | Three Councillors .... | .... 300 |
| 4. | Family .... .... | .... 300 |
| 5. | Learning and Education | .... 200 |
| 6. | Horse and foot .... | .... 4,000 |
| 7. | Elephants, camels, bulls, fire-arms .... .... | .... 400 |
| 8. | Savings .... .... | .... 1,500 |
| | **Total** .... | **8,300** |

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(For Harsha's finances see Hiuen Tsiang's *Si Yuki*, vol. i, pp. 87-88.)

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धर्मार्थकामसिध्यर्थं कुर्यात् भागत्रयव्ययं ॥
भागेनकेन चावश्यं कुर्यात्कोशस्य संचयं ।
कोशात्सुखमवाप्नोति कोशहीनस्तु सीदति ॥ (v. 6, 45-46.)
This work is an encyclopædia of Indian literature, science and art, its authorship being attributed to Basappa Nāyaka of the Keladi dynasty. It is roughly a composition about A.D. 1700.

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The annual saving for a *sāmanta* state worth *karṣas* 1,00,000 is 18,000 or 9/50 or 18 per cent which is nearly 1/5th of the income,¹ as is seen from the above balance sheet drawn by the *Sumantra* or finance minister.² In Śukra’s opinion the reserve fund should be such as to keep the army and the people for a period of twenty years without imposing any dues or fees.³ Elsewhere he says that it is alone good treasury where there is wealth enough for thirty years (त्रिंशदब्दप्रपूरं) and grains for three years. Whatever is consumed is to be replaced.⁴

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¹ iv. vii. 24-30.

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² Śukra, ii. 102-3.

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³ > दण्डभूभागशुल्कैस्तु विना कोशाल्लस्य च ।

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⁴ iv. ii, 22 ff.

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The amount must certainly depend on the extent of the territory of that state. The reserve of the royal treasury has thus been considered as the first line of defence, and every endeavour was made to maintain a full treasury by income from only legitimate sources. To be in possession of a full treasury the state must endeavour to increase the development of agriculture, cattle and commerce (कृषिगोरक्ष्यवाणिज्यं). These have been ‘reckoned as unfailing sources of income for the state.’⁵ It would thus appear that the principles that guided the public expenditure, were good for those times and served their purpose very well.

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⁵ Śānti Parvan, lxxxviii. 27.

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संरक्षणं भवेत् संयग्यावद्विंशति वत्सरम् ॥
तथा कोशस्तु संधार्यस्वप्रजारक्षणक्षमः ॥ (iv. ii. 13,)
धान्यानां संग्रहःकार्यौ वत्सरत्रयपूर्तिदः
तत्तत्काले खराद्यर्थं नृपेणात्महिताय च ॥ (Ibid., 25.)
व्ययोभूतं तु यद्द्रव्यं तत्तुल्यं तु नवीनकं ।
गृह्णीयात् सुप्रयत्नेन वत्सरे वत्सरे नृपः ॥ (Ibid., 29.)

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