Hindu Administrative Institutions c9.s4: Sec. iv. Emergency Taxes and Loans

Hindu Administrative Institutions c9.s4

Language: English

Sec. iv. Emergency Taxes and Loans

c9.s4.1

There is evidence to demonstrate that emergency taxes and loans were raised occasionally. These are not taxes in the strict sense of the term. They are of the nature of voluntary gifts. These free gifts Kauṭalya characterizes as *praṇaya*. To exact such gifts, especially from the rich the state showed some consideration. Those who came forward to contribute were honoured with presents and titles. The presents included among others an umbrella, turban and some ornaments with which the donors were honoured in the court, and their names were advertised in public so as to attract more gifts of a voluntary nature.¹ It may be remarked in passing that this device is not new to students of modern fiscal history. Sometimes recourse was had to loans repayable by the state when the latter is in a position to pay. Such cases were resorted to when the state was in a condition of impending danger, to avert which, experts felt, the reserve in the treasury would not suffice. When grave and contagious diseases ravaged the land, and pestilence and famine faced the kingdom in all nakedness, or when a powerful enemy was at the door essaying to force through the gates, the king could go abegging for funds. The appeal to be made is as follows:—"There is a grave danger facing us in all nakedness. The enemy wants to ruin us but will in turn be ruined by your help. For your protection I require funds which are returnable after we have got over the danger. If on the other hand the enemy gets possession of this land he will deprive you of your property, and even of your wives and sons. To avert this you must co-operate by lending me a helping hand. But in this let there be no violation of the accepted canons of taxation. By your help again I shall be protected. What is the use of treasure, if it were not used in times of great crisis?' In this way it is said the appeal must be couched in soft and sweet words so that it may produce the desired effect.¹

c9.s4.2

¹ Bk. v, Sec. 2.

c9.s4.3

¹ इयं आपत्समुत्पन्ना परचक्रभयं महत् । अपि चान्ताय कल्पन्ते वेणोरिव फलागमाः ॥ . . . . . अस्यां आपदि घोरायां संप्राप्ते दारुणे भये । परित्राणाय भवतः प्रार्थयिष्ये धनानि वः ॥ प्रतिदास्ये च भवतां सर्वं चाहं भयक्षये । नारयः प्रतिदास्यन्ति यद्धरेयुर्बलादितः ॥ . . . . . नन्दामि वः प्रभावेण पुत्राणामिव चोदये । यथाशक्यमुपगृह्णामि राष्ट्रस्यापीडया च वः ॥ आपत्स्वेव निरोढव्यं भवद्भिः संगतैरिव । न वः प्रियतरं कार्यं धनं कस्यांचिदापदि ॥ इति वाचा मधुरया श्लक्ष्णया सोपचारया । स्वरश्मोनभ्यवसृजेद्योगमाधाय कारुवित् ॥

c9.s4.4

Here is proof positive to show that war-loans were a feature of early Indian administration. Its importance lies in the fact that these loans were not exacted by force or realized by fraud in ancient India. The tendencies are quite modern. And from the wording of the appeal it is certain how both the state and the people realized their mutual interdependence, and how the welfare (yogakshema) of one was intimately bound up with that of the other.¹ The state felt its helplessness in the face of a grave crisis without the people's help. And surely this mutual action would have led to notable results. Even here loans must be obtained from those who could afford. The poor must not be forced to pay out of their small incomes. But if those who could afford did not come forward to help in times of necessity, the king may then use force to increase his treasure which was only to realize the ends of human existence, and hence not immoral. If necessary the thorns in the way of increasing the treasury may be removed so as to achieve the objects of life. The nature of this dharma is best illustrated thus: for an yajña people cut a yūpastamba tree. To get this such other trees as stand in its way are cut down. When these fall they cause the falling of other trees in their neighbourhood. So also with a little trouble and effort the treasury could be increased but only in cases of extreme necessity.²

Linked texts (1)

Mahābhārata — Vyāsa, Sanskrit