The Evolution and Intricacies of Union Budgets
News sourced from the archival insights of Reader Wall reveals that the annual Union budget, which traces its roots back to 1860-61 under British rule, continues to hold a position of importance in contemporary India’s financial frame. However, some might wonder – did India, in its ancient glory, practice similar planning and accounting processes?
The Arthashastra Perspective
While the details vary, the concept of maintaining and managing resources isn’t alien to ancient India. While the specific processes followed by various dynasties across the nation remain shrouded in historical obscurity, the Arthashastra, penned by the sage Kautilya, provides a glimpse into the intricacies of budgeting in the Maurya kingdom.
A Glimpse into the Past
One fascinating aspect Kautilya chronicled was the annual budget being based on a 354-day year cycle, perfectly in line with the King’s regnal year famously termed as ‘rajavarsham.’ The commencement and conclusion dates were meticulously coordinated with specific astronomical events, similar to the modern practice.
The Role of the ‘Samaharta’
In Kautilya’s detailed records, we come across a figure equivalent to today’s Finance Minister – ‘Samaharta.’ The Samaharta was entrusted with drafting the budget and managing the kingdom’s financial affairs.
The Body of Income – ‘aayasharira’
On a closer research of Kautilya’s work, it reveals that the revenue streams were compartmentalized into seven primary sources including city, country, mines, irrigation works, forests, cattle herds, and trade routes, each bringing in income through different means.
Expenditure and Category – ‘vyayasharira’
As Kautilya portrayed it, the expenditure was categorized into fifteen different facets with allocations for the worship of gods, charity, and significant allocations for the armed forces, the armoury, and the palace.
Concepts Echoing Contemporary Budgeting Systems
Although the Arthashastra’s accounting streamed a different era, its well-documented concepts draw striking parallels with modern-day practices, with sections akin to contemporary revenue estimates, accrued revenue, income, and outstanding balances.
The Comprehensiveness of Arthashastra
As research progresses deeper into Kautilya’s records, the meticulousness and specificity of the Arthashastra surface. From the establishment of revenue estimates at the start of the year to the segregation of income into different categories, every facet remains carefully documented, almost mimicking a modern-day budget blueprint.
The Importance of Records and Audit
Another intriguing aspect of Kautilya’s portrayal is the introduction of an office to maintain the records and perform audits, termed as ‘Akshapataladhyaksha,’ mysteriously akin to what we know today as the Comptroller and Auditor General.
Similarities with Modern Budgeting
Delving into the present day, the Union budget’s financial statement mirrors an uncanny resemblance to the Arthashastra’s layout with various consolidated funds gathering through tax sources and non-tax sources alike. Similarly, allocations in the budget today span general services, social services, and economic services, reminiscent of Kautilya’s categorization.
Differences from Contemporary Budgeting
While many elements are echoing with the past, there lies a stark contrast in the absence of a specific differentiation in capital and revenue accounts in the Arthashastra. Unlike the modern focus on grand-scale development and economical planning, these facets didn’t make it onto Kautilya’s budgetary outline.
In Conclusion
The intricate financial planning, resource allocation, and auditing systems established in ancient times continue to reflect in the Union budgets of today. Though times have changed, the essential objective remains – the welfare of the state and its citizens, also the crux of the budget planning since antiquity.
The insights for this article are provided by Dr. Srinath Sridharan, a policy researcher and corporate advisor.
