Kosha: Treasury and State Economy in Arthashastra

Introduction

Here we will explore Kosha, the fifth element of a Kautilyan state, focusing on the treasury and the state economy. We also examine Arthashastra's detailed insights into financial planning and economic administration.

Economic Administration in Arthashastra

Arthashastra provides a comprehensive guide to economic administration, using detailed financial planning. The state's wealth includes the king's treasury, commodity warehouse, granary, store for forest produce, and audience depots.

Key Economic Activities

Kautilya identifies three main types of economic activity:

1. Agriculture
2. Cattle rearing
3. Trade

These activities generate resources like grains, cattle, gold, forest produce, and labor. The king uses these resources to build the treasury and the army.

Importance of the Treasury

Kautilya emphasizes the importance of the treasury, stating that it is more important than the army. A well-filled treasury allows the king to maintain a strong army and control both the people and the enemy.

State Income and Expenditure

Arthashastra classifies state income under seven heads:

1. City
2. Country
3. Mines
4. Irrigation works
5. Forests
6. Cattle herds
7. Trade routes

Expenditure includes expenses related to the palace, armory, and armed forces.

Sources of Income

Arthashastra identifies eight broad sources of income:

1. Mulya: Price realized from the sale of state goods.
2. Bhaga: Share of goods produced by subjects, mainly agricultural produce (one-sixth).
3. Vyaji: Tax imposed on all sales.
4. Parigha: Protective duty for safeguarding state goods.
5. Klipta: Fixed levy charged at ports and riverbanks.
6. Rupika: Surcharge on manufactures.
7. Atyaya: Penalties.
8. Taxes in kind: Labor (vishti) and supply of soldiers (ayudhiya).

Tax Collection

The state collects revenue from subjects engaged in agriculture, cattle tending, and trade. Arthashastra provides detailed descriptions of tax collection procedures, including custom houses, city gates, and excise duties.

Replenishing the Treasury

Recognizing that the treasury can be depleted during adversities like wars or natural calamities, Kautilya outlines special efforts for quick replenishment. These methods are described in Book 5, Chapter 2 of Arthashastra.

Fees and Service Charges

In addition to taxes, Arthashastra lists various fees and service charges, including:

• Shulkam: Customs duty, including import and export duties.
• Vyaji: Transaction tax.
• Pautava: Fees for weights and measures.
• Mudra: Passport fees.
• Tara: Ferry fees.
• Patthanam: Port dues.
• Rupikam: Coining fee.
• Rajjuhu: Land survey charges.
• Parikshikam: Testing fee.
• Atvahikam: Escort charges.
• Kliptam: Fixed charges.

Conclusion

Kosha, the treasury, plays a vital role in the Kautilyan state. Arthashastra's detailed analysis of income sources, expenditure, and financial planning demonstrates the importance of economic administration in governance.