Income and Expenditure – Ancient India
Chapter – 12
- Sound finances are crucial for a stable and prosperous state, a view recognized by ancient Indian political thinkers who considered a prosperous treasury and ample reserves essential for governance.
- Vedic literature provides limited information about state revenues due to its religious focus; early taxation was likely occasional and voluntary, with kings relying on their own lands and resources.
- The term bali originally referred to voluntary offerings to gods and later applied to presents and taxes to kings, indicating early subjects were not accustomed to regular taxation.
- Over time, the king was metaphorically described as the ‘eater of his subjects’, suggesting a transition to regular tax payments that supported royal dignity and authority.
- In the Vedic period, Brāhmaņas served as priests, Kshatriyas focused on conquest, while Sudras had no property, resulting in heavy taxation on the Vaisyas, who engaged in productive activities like agriculture and trade.
- The Vaisya class was often described as the primary payer of tributes and taxes, although all classes were taxed by the king.