Hindu Administrative Institutions c9.s3.13

c9.s3.13

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.