Kautilya’s academic work “Arthashastra” is a combination of political wisdom, theory, and the art of statecraft. This study is an attempt to trace the contribution of Kautilya to the development of some of the fundamental concepts in public finance. Kautilya contributed to the development of the idea of the State and its objectives, the State’s role and responsibilities, sources of revenue, expenditure, and welfare. This study attempts to consolidate the concepts from “Arthashastra” that elucidate the foundation of the modern theories of public finance. The study found that Kautilya’s work has contemporary relevance and it applies to modern public finance. Modern tax policy, expenditure policy, and welfare policy might reach a benchmark solution with the help of Kautilya’s work

Ancient Economic Thoughts, Structure and Scope of Government, Taxation and Revenue, Fiscal Policy

Kautilya, also known as Chanakya, made significant contributions to the foundational concepts of public finance and economics, which have had a lasting impact on the development of economic thought in India and beyond. In ancient India, scholarly pursuits across various disciplines were approached holistically, considering the interconnectedness of different aspects of life. The Arthashastra, authored by Kautilya, exemplifies this integrative approach by serving as a comprehensive treatise that encompasses sociology, state governance, military strategy, economics, diplomacy, and other facets of statecraft. This multidisciplinary perspective allowed for a nuanced understanding of how a state functions and thrives. The Arthashastra was not merely a manual for rulers but a reflection of the complex socio-political fabric of ancient Indian society. It provided detailed strategies for administration, fiscal policy, taxation, warfare, and diplomatic relations, all aimed at maintaining stability and prosperity within the empire. Its emphasis on prudent financial management and resource allocation contributed to the development of key ideas related to state economics and public finance. Furthermore, Kautilya's work laid the groundwork for future scholars in understanding the importance of economic strength in national security and sovereignty. It underscored the necessity of a well-organised and efficient state apparatus for economic growth and societal welfare. Overall, the Arthashastra serves as a monumental contribution—a blend of practical governance and philosophical insight—highlighting the sophisticated understanding of economics and governance in ancient Indian civilization

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