Gujarat BoardEnglish MediumSTD 11 CommerceEconomicsEconomic Thoughts3 Marks
Question
Explain Kautilya's thoughts about state treasure.
✓
Answer
Kautilya's thoughts about State Treasure :
Kautilya kept state treasure on the top in the list of the ways which he suggested for the prosperity of the state.
All the work of the state are dependent on state treasure so he advised all the kings to keep increasing their state treasure.
A state which has enough state treasure can spend proper money for its defense, so it creates greater influence on other state and their by making the state strong and impressive.
Stability can be maintained if a state has proper state treasure.
State treasure helps the state in natural calamities like draught, floods , cyclone etc..
In India many kings opened the gates of their state treasures in such natural calamities.
When a king accepts such kind of responsibilities, it helps in strengthening the bonding between the king and subjects.
State treasure is important to make a state prosperous economically.
Kautilya also suggested to use the state treasure for developing trade, agriculture, industry, transportation and communication system.
He suggested to construct warehouses and dharamshalas $($guesthouses$)$ for facilitating traders.
At that time free trade policy was implemented on large scale. Inspite of this, tax was imposed on imported goods.
Kautilya also suggested that the government itself should produce some products and make arrangements for sales through government department.
Sufficient state treasure was required by the state so that the king can take the responsibility of social welfare $($Social security$)$.
Every person was protected against starvation.
The main aim of state administration was to distribute funds and food.
Kautilya wished to have complete rule of state over its subjects but his aim was of social welfare.
According to him it was the responsibility of the state to establish religious institutions for the poor and encourages jobs for unemployed persons.
It was the duty of the state to protect poor and weak people. In short, Kautilya was in favour of such a state which was based on social security.
This concept is useful even today for better management.
So it can be concluded that the use administratative expense is required for performing various responsibilities.
Every king should try to gather state treasure in ethical manner.
Kautilya has shown $7$ sources of income for the state, which include :
Towns,
Villages,
Irrigation,
Mines,
Jungle,
Animal husbandry,
Trade and commerce.
He suggested ways to collect state treasure like:
He has emphasized that the king should collect taxes once in a year.
He should not use forceful means to increase the treasury.
It is also advised to refrain from harshness while collecting taxes from regions facing famine and drought.
Kautilya also specified the rates of taxes $($amount of taxes$)$ for various categories of workers.
For example, one fourth of the agricultural production may be collected as tax from individual farmers; one half of the production nay be collected as tax from individual manufacturers of cotton, wool, silk, wax and medicines.
This ray he suggested taxes for other occupations also.
He also suggested on the use of public property, promotion of trade, gifts, penalties, fines and rewards etc.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.