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Hindu Administrative Institutions c9.s5: Sec. v. The Department of Finance

Hindu Administrative Institutions c9.s5

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Sec. v. The Department of Finance

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This department was under the supervision of two important officials of the state, Sannidhāta and Samāharta. The former answers to the modern minister of finance. He was the supreme officer in charge of the revenues while the Samāharta was the collector-general. He was perhaps the official known as Saṃgrahīta (which Sāyaṇa interprets as treasurer) during the Vedic period. These two officers take the names of Sumantrā and Amātya according to the *Śukranītisāra*.¹ Though there is a change in the names of officers, the functions seem to have remained the same. The duties of the Sannidhāta mentioned in the *Kauṭalīya*² are the following: He should see that the revenue properly collected was received duly in his office and that the same was safely kept.³ He had charge again of precious stones, grain stores, of forest-produce, besides buildings connected with the preservation of the above, treasures of gold, grains and other articles. It seems several separate buildings were erected and an official was placed over each. He had also under his control the buildings in respect of the armoury, the prison-house, the courts of justice and other civil administrative courts.⁴ It was also his duty to see that every house was well furnished and left nothing to be desired.

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¹ ii. 204-12.

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² *Arthaśāstra*, Bk. ii, Sec. v.

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³ आत्मपुरुषाधिष्ठितः सन्निधातानिच्चयानानुतिष्ठेत् । (*Ibid.*)

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⁴ सन्निधाता कोशगृहं पण्यगृहं कोष्ठागारं कुप्यगृहमायुधागारं बन्धनागारं च कारयेत् । (*Ibid.*)

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Thus he seems to be more an officer of the Central State. On the other hand the Samāharta was directly connected with the rural areas. He was in charge of the fortresses, mines, agricultural works, forests, roads and cattle. There is evidence to indicate that the superintendents of mines (*ākara, khani*), of metals (*loha*), of the mint (*lakṣaṇa*), of salt (*lavaṇa*), of gold (*svarṇa*), of trade (*paṇya*), of forest-produce (*kupya*), of weights and measures (*tulāmāna pautava*), of tolls (*śulka*), of textiles (*sūtra*), of cultivation (*sītā*), of excise (*surā*), of slaughter-houses (*śuna*), of courtesans (*gaṇikā*), of cattle (*go*), of passports (*mudrā*), of pastures (*vivīta*), of gambling (*dyūta*), of charitable institutions (*devatā*), of prison-houses (*bandhanāgāra*) were all under the control and supervision of the Samāharta. He seems to have been a busy official attending to both the administration of the city in which he lived (the *nāgaraka* being his subordinate) and of the local areas. His functions also included some branch of police work. It was his other duty to make a classification of the villages for the purpose of revenue collection. Five classes are distinguished—areas exempted from paying taxes, those supplying man-force for military services, those paying taxes in gold, those paying them in kind, and those supplying free labour.¹

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¹ *Arthaśāstra*, Bk. ii, Sec. vi.

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The treasury and the store-house were, it can be presumed, under the management of the Sannidhāta. A treasury consists of deposits of gold, of useful and valuable materials built by loyal servants, pearls and gems earned according to *dharma* by predecessors, undiminished by unexpected expenditure.² Jayaswal speaks of an exchequer under the ministry during the Vedic period and thinks the Vedic Ratnins were connected with it. If he is right, then Kauṭalya’s system is certainly an improved one. From the *Arthaśāstra* we see the treasury of the Mauryas contained pearls from the Pāṇḍya and Kerala countries, from Persia and the Himalayas, gems (*maṇi*) of different sizes and value from the Vindhyas and Malaya mountains, diamonds of various kinds from Kalinga, Kośala, Benares, and coral from the isle of Yavanas.¹ There came also perfumes of different varieties, furs and fabrics of several kinds, produced in different parts of India, besides minted coins of silver and copper (*rūpyarūpa* and *tāmrarūpa*). To the storehouse (*koṣṭhāgāra*) came the agricultural produce of crown lands and other Government dues received in kind. Besides grains, a number of varieties of oil, sugar, pungents, salt etc., are mentioned. It is said that half of them was utilized in the shape of allowances to the members of the royal family and their dependents. The remaining half was held in reserve to meet unexpected expenditure due to calamities like famine. The Sannidhāta had thus a first-hand knowledge of the total income and expenditure of the state. He was expected to have records of income and expenditure running over a hundred years, so that whenever questioned, he could place on the table records showing the exact balance at any given period.² It was hence his duty to frame budgets which would show a desirable balance at the end of the year.³

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² *Kāmandaka*, iv. 60-61.

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¹ *Arthaśāstra*, Bk. ii, chap. ii. Śukra speaks of nine kinds of gems with their different qualities, iv. ii. 40 ff. This chapter of the *Arthaśāstra* is interesting in that it shows the extensive intercourse of North India with the extreme South India and Ceylon. It also shows the flourishing state of the Pāṇḍyas, Keralās, and the Ceylonese about 300 B.C. This is further attested by references in the *Rāmāyaṇa*, the *Mahābhārata* and the writings of Megaśthenes.

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² बाह्याभ्यन्तरं चायं विद्याद् वर्षशतादपि । यथा पृष्टो न सज्जयेत व्ययशेषं च दर्शयेत् ॥ (*Arthaśāstra*, Bk. ii, Sec. 5.)

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³ इयच्च संचितं द्रव्यं वत्सरेऽस्मिन्गुणादिकं । व्ययोभूतमियच्चैव शेषं स्थावरजंगमं । इयदस्तोति वै राज्ञे सुमंतो विनिवेदयेत् ॥ (*Śukra*, ii. 102-3.)

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Connected with this department was the Accounts department which was presumably under the charge of special superintendents who were directly responsible to the Sannidhāta. To exercise proper control over the finances of the state it was deemed a necessity to maintain an Accounts department as well as a Record office. Monahan is right when he interprets the akṣapaṭala both as an accountant’s office and a general record room.¹ Here were maintained books well-arranged according to the respective accounts of countries, villages, families and corporations. There was further noted against the individual member of each family of a village, or country, his profession, age, caste and income. There were also title-deeds as regards the sale and purchase of lands as well as royal grants, showing the special cases wherein remission of taxes was generally allowed. In short every minute detail in respect of the finances of the realm was recorded by entry in the respective account-books. Not only were books maintained for noting down the items of income to the state but there were also corresponding books for expenditure.²

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¹ Early History of Bengal, p. 45.

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² Arthaśāstra, Bk. ii, Sec. 7.

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More or less connected with the topic under discussion is that of official documents, which are either official letters (lekha), or royal writs (śāsana). Official letters are classified according to their purport: blame (nindā), praise (praśamsā), inquiry (pṛccha), narration (ākhyāna), request (arthana), refusal (pratyākhyāna), censure (upālamabha), prohibition (pratiṣedha), command (codanā), conciliation (sāntvam), promise of help (abhyavāpatti), threat (bhartsana), persuasion (anunaya). Writs or decrees are the following: notice (prajñapana), command (ājñā), gift (*paridāna*), remission (*parihāra*), licence (*nisṛṣṭi*), instruction (*pravṛttilekha*), reply (*pratilekha*), general proclamation (*sarvatraga*).¹ These different documents show how elaborate must have been the administration of the land, and how orderly the system of government. There were records which were presumably presented in the Record office under the supervision of the Accountant-general. For they dealt with matters pertaining to the state, and hence would be required for reference occasionally.

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¹ *Early History of Bengal*, p. 46; *Arthaśāstra*, Bk. ii, Sec. 10.

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Copies of ultimatum issued to hostile monarchs and of treaties were also maintained.² The items of income as well as expenditure were daily, monthly and annual respectively. There were also separate accounts wherein every item of public expenditure according to the various departments was found mentioned: state manufactories, their outlay, profit, loss, expenditure, and the balance. There were also records showing the receipt of valuable gems, pearls, and other precious stones, or metals, as well as the receipts from the treasury, towards the expenses of royal household, or foreign wars, or treaties. They further maintained accounts as to the civil list and those relating to the military administration of the realm. From these it would appear that this department was virtually the most important as actual records were here maintained in respect of all state activities. Thus the Mauryan Government can be said to have possessed many attributes of modern administration, especially in the department of finance. It is interesting to examine the various items in respect of an account:

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² सन्धिविक्रमप्रदानादानानि निबन्धपुस्तकस्थं कारयेत् ।

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1. Balance at the commencement of the year, or the opening balance (वर्तमानः).

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2. Balance on hand (पर्युषितः).

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3. Windfalls (अन्यजातः); Amount written off by others, not claiming it in proper time; fines for misconduct of government servants, marginal revenue (पार्श्व), compensation for damages, presents to the king, unclaimed property of deceased men leaving no legal heirs, finds of treasure, treasure-troves.¹

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¹ Arthaśāstra, Bk. ii. Sec. 6.

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The accompanying books were preserved in shelves opposite which seats were arranged for clerks to sit and work with. Duly qualified men were appointed as assistants in the office. Yājñavalkya recommends loyal and honest men for the work of collection and disbursement.² In Kāmandaka’s opinion these were to be selected by the king from his own kinsmen who must, however, be experts in different branches of business.³ The working year was reckoned as 354 days and nights. The budget seasons commenced towards the close of the month of Ashāda, or roughly the middle of July.⁴ Strict discipline was maintained. No government servant could absent himself without leave. Any loss occurring during such voluntary absence should be made good from his private property. Again loss of revenue due to ignorance (अज्ञानं), carelessness (आलस्यं), inadvertence (प्रमाद), fear (भय), selfishness on the part of government servants (काम, कोप, दर्प, लोभ), was adequately compensated for. This amount was in no way fixed. Manu ordains a fine equal to the loss while Parāśara, Bṛhaspati, and Uśanas recommend eight, ten, and twenty times the loss. Kauṭalya rules the fine to be proportional to the guilt.¹

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² तत्र तत्र च निष्णातानध्यक्षांकुशलान् शुचीन् । प्रकुर्यादायकर्मान्तव्ययकर्मसु चोयतान् ॥(Yāj., i. 322.)

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³ v, 74-76.

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⁴ Arthaśāstra, Bk. ii, chap. 6 and 7.

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¹ ‘यावानर्थोपघातः तावानेकोत्तरो दण्डः’ इति मानवाः ॥ ‘सर्वत्राष्टगुणः’ इति पाराशराः ॥ ‘दशगुणः’ इति बार्हस्पत्याः ॥ ‘विंशतिगुणः’ इत्यौशनसाः ॥ ‘यथाऽपराधम्’ इति कौटिल्यः । (Arthaśāstra, Bk. ii, chap. 7.)

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The accountants (karaṇika) were to submit their annual accounts by the first of the month of Srāvaṇa when set officers begin auditing them. The account books from rural areas were to be presented in sealed covers showing the receipts, expenditure, and the net balance.² Those who did not submit their books in proper time were liable to a fine. There should be no delay in the auditing of accounts. The auditor in his turn sent them as audited to the secretaries of the respective departments. A time of grace was usually allowed in submitting the accounts having regard to the nature of those accounts.³ Such of the officials as had shown increased items of income and decreased expenditure were to be rewarded, and if reverse they were punished.⁴ The accounts were to be submitted only in the prescribed forms, and any departure from this, and also double or treble entries were punished. Manipulation of entries, false accounts and scraping off the net-total were severely dealt with.¹

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² गाणनिक्यान्द्याढाभागश्चेत्युः । आगतानां समुद्रपुस्तकभाण्डनीवीका- नामेकत्र सम्भाषावरोधं कारयेत् । (Arthaśāstra, Bk. ii, chap. 7.)

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³ अल्पशेषलेख्यनोविकं पञ्चरात्रमाकाङ्क्षेत । (Ibid)

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⁴ Arthaśāstra, Bk. ii, chap. 7.

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¹ क्रमावहोनं उत्क्रममविज्ञातं पुनरुक्तं वा वस्तुक्रमविलहतो द्वादशपणो दण्ड: । नोबोमवलिखतो द्विगुण: .......... (*Arthaśāstra*, Bk. ii, chap. 7.)

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*Embezzlement.*—While on this subject a passing reference may be made to the different forms of embezzlement by government servants. Kauṭalya distinguishes forty forms of embezzlement though Monahan remarks that thirty-six forms are enumerated. The forty are:—

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1. A later entry of a former realization.
2. And *vice versa* (these two are generally in cases of rice, wheat, and other crops).
3. Leaving out what ought to be got.
4. Entering as realized though not actually realized. (This latter may be taxes from Brahmans).
5. Actually collecting and not entering it and
6. The reverse.
7. Realizing a portion due and showing it full.
8. *Vice versa*.
9. Gathering one sort and entering another, e.g., pulses for rice.
10. Realizing from a certain source or party and entering a different source.
11. Paying where no payment is due and
12. *Vice versa*.
13. Not paying on proper occasions such as gifts on marriage day.
14. Irregular and later payments so as to receive bribes from the party.
15. Giving large gifts in place of small gifts and 16. *Vice versa.*
17. Wrong entry of gifts awarded.
18. Wrong entry of the names of the donee.
19. Crediting a wrong thing in the place of another received.
20. Wrong entries of raw materials paid for and not paid for.
21. Entering individual assessments for a levy on the whole village and
22. *Vice versa.*
23. Exchanging valuable commodities for those of lower value and
24. *Vice versa.*
25. Entering increased prices for objects of low value and
26. *Vice versa.* 27-28. Wrong entry as to the actual number of days worked both by adding and subtracting.
29. Months not tallying with years, and
30. Days not tallying with months.
31. Wrong transactions as regards labourers' pay, etc.
32. Misrepresenting sources of income.
33. Misrepresenting charities given.
34. False statements of actual fact. (The commentator cites as an example that the superintendent of the ferry appropriating the dues to himself under the shelter of a false plea that the Srotriyas alone crossed the river).
35. No consistency even in entry of fixed items.
36. False representation of standards of test and fineness. 37-40. Misappropriation by use of false weights and measures, by giving wrong prices, by deceit in the counting of the numbers of articles bought or sold, and by the use of wrong cubic measurements (*bhājana*).

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In these cases the officials involved were the treasurer (*nidhāyaka*), the prescriber (*nibandhaka*), the receiver (*pratigrāhaka*), the payer (*dāyaka*), the middleman (*dāpaka*) and the menial servants. That person who was responsible for the offence was to be punished according to the nature of the crime committed. Informants who succeeded in proving the charge were to be rewarded and those who failed in establishing their position were liable to punishment for having cast reflection on the innocent.¹ The punishment varied according to the gravity of the guilt. Small guilt was always attended by the king's pardon. But clever and intelligent accountants were always rewarded with titles and honours in the court.² Another feature of the *Kauṭalīyan* finance is the grant of travelling allowances for servants going on state business. There is a practical illustration of this in the *Rāmāyaṇa* where Vasiṣṭha orders royal messengers to go and fetch Bharata immediately from his uncle's house to Ayodhya on the death of Daśaratha. They set out after having drawn the travelling and halting allowances (दत्तपथ्याशना),³ which Govindarāja interprets as दत्तमागर्शनहेतुभूतद्रव्याः In this connection we may mention another feature of ancient Hindu administration which is as much an anticipation of what is regarded as modern. Government servants were often transferred from one place to another (विक्षेप). The object of this is said to mitigate the evils of bribery and corruption, on the part of the servants.⁴ But there were certain offices which remained permanent, and there was no transfer of officers. These were those who were placed in charge of the palace, fortresses and country parts.¹

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¹ *Arthaśāstra*, Bk. ii, Sec. 8.

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² *Ibid.*, Sec. 7.

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³ ii. 68. 10.

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⁴ शतवर्गसहस्रवर्गाणामध्यक्षा भक्तवेतनलाभमादेशं विक्षेपं च कुर्युः । (*Arthaśāstra*, Bk. v, Sec. iii.)

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¹ अविक्षेपो राजपरिग्रहदुर्गराष्ट्रक्षावेक्षणेषु च नित्यमुख्यास्युरनेकमुख्याश्च । (*Arthaśāstra*, Bk. v, Sec. iii.)

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It is further interesting to examine that Government officials, especially of the revenue department (it appears also true of all departments), were to be entertained first as temporary hands. They were made permanent in course of time, if they proved loyal to the work and won the approval of superiors by showing an increase in the revenue.² Such permanent servants of the state are entitled to certain privileges and rights by way of leave and reward. There were both full-time servants, or servants who had to work both day and night, and day servants, or servants who had no duty during nights. The full-time servants were given rest one *yāma* or three hours for the day, and three *yāma* for the night. That is to say a full-time servant was to work twelve hours in all for a whole day. The day servants enjoyed half a *yāma* in the day and also all the night.³ Besides there were full holidays on days of festivities and festivals. Special leave was given to those who had to perform religious ceremonies.⁴ In addition, a Government servant was entitled to fifteen days' leave for a year.

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² *Ibid.*

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³ भृत्यानां गृहकृत्यार्थं दिवायामं समुत्सृजेत् । निशियामत्यं नित्यं दिनभृत्येऽर्धयामकम् ॥ (*Śukra*, ii. 408.)

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⁴ अत्याश्वयं तूत्सवेऽपि हित्वाश्राद्धदिनं सदा । (*Ibid.*, 409.)

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There was a wonderful arrangement of sick leave. Ordinarily a man who had served for five years was entitled to three months’ leave with three-fourth wages, and six months if the disease was of a serious nature.¹ Full wages were given to all in the case of a week’s sick leave. If leave were taken for a year and more, a substitute was appointed, and in the case of the highly qualified, half the pay was given for the whole period.² Generally one-eighth of the pay was allowed as reward every year. This perhaps refers to the annual increments for the staff. There were in vogue both the systems of provident fund and pension for service. He was entitled to half-pension who would retire from service at the age of forty. This was not only for life but continued even after the servant’s death, provided his son was a minor and incapable of earning his livelihood; and in the absence of a son to his wife and well-behaved daughters.³ No further testimony is required to indicate that ancient Hindu administration was run on humane and yet efficient lines. The state offered to help the helpless, and the needy in times of need. This solved one of the very important social and economic problems. The state found employment for the unemployed and provided for the incapable. This social activity on the part of the state kept out many of the economic ills of modern days. These very important rules and regulations of pay, discipline, leave, allowances and pension testify to a state of highly developed administration, to the perfection of which ancient political thinkers and theorists contributed not a little.

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¹ पादहोनां भृतिं आर्ते दद्यात् त्रैमासिकीं ततः । पञ्चवत्सरमप्येतु न्यूनाधिक्यं यथा तथा ॥ षाण्मासिकीं तु दोषार्ते तदूर्ध्वं न च कल्पयेत् । (Śukra, ii. 410–11.)

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² संवत्सरोषितस्यापि ग्राह्यः प्रतिनिधिस्ततः । सुमहद्गुणिनं भृतिं भृत्यधं कल्पयेत्सदा ॥

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³ चत्वारिंशत् समानोतास्सेवया येन वै नृपः । सेवां विना नृपः पक्षं दद्याद्भृत्याय वत्सरे । तत्तसेवां विना तस्मै भृत्यधं कल्पयेत् सदा ॥ यावज्जीवं तु तत्पुत्रेऽक्षमे बाले तदर्थकं । भार्यायां वा सुशीलायां कन्यायां वा स्वश्रेयसे ॥ अष्टमाशं पारितोष्यं दद्याद् भृत्याय वत्सरे । (Ibid., 410–16.)

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We shall close this chapter with the following reflection of Kauṭalya which speaks for itself:—

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The whole administrative edifice is dependent on finance . . . . . progress of trade and commerce (प्रचारसमृद्धिः), sympathy with the well-behaved (चारित्रानुग्रहः), absence of robbery or good policing, reduction of the establishment in overcrowded departments, plenty of crops, prosperous commerce, freedom from calamities and difficulties of any kind (उपसर्गप्रमोक्षः), moderate remission in the matter of taxes, means for the increase of income in gold (*hiraṇyopāyanam*), these are elements that contribute to the financial prosperity of a state. The following on the other hand tend towards financial adversity: not taking advantage of the opportunity (प्रतिबन्ध), lending state money on interest (प्रयोग), illicit transactions (व्यबहार), fabricating accounts (अवस्तार), diminution of revenue (*parihāpana*), misappropriation of the valuables (*upabhoga*), illegal exchange of goods and articles (परिवर्तना), and defalcation (अपहार). The last, namely, defalcation may be in three ways:

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1. The total revenue due is not handed over to the exchequer.

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2. What needs to be spent for the establishment has not been properly expended.

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3. Misrepresentation in the amount actually realized with numerous precautions to detect the offences. It does not require any effort of imagination to conclude that every endeavour was made to attain financial prosperity in ancient Indian states generally.¹

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¹ कोशपूर्वास्सर्वारम्भाः । तस्मात्पूर्वंकोशमवेक्षेत । प्रचारसमर्धिः चरित्रानुग्रहश्चरग्रहो युक्तप्रतिषेधः सस्यसम्पत्पण्यबाहु- ल्यमुपसर्गप्रमोक्षः परिहरक्षयो हिरण्योपायनमिति कोशवृद्धिः ॥ प्रतिबन्धः प्रयोगो व्यवहारोऽवस्तारः परिहामुपणपभोगः परिवर्तन- मपहारश्चेति कोशक्षयः ॥ . . . . . सिद्धमायं न प्रवेशयति । निबन्धं व्ययं न प्रयच्छति । प्राप्तं नोवौ विप्रतिजानोत इत्यपहारः ।

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