The real Artha in Arthashatra

Gen Z edition

In the interest of the prosperity of the country, the administrator in governance shall be diligent in
foreseeing the possibility of calamities, try to avert them before they arise, overcome those which
happen, remove all obstructions to economic activity and prevent loss of revenue to the state.
(Kautilya 1992: 116)

“Prithivyaa laabhe paalane cha yvantyarthashastrani, poorvachaaryaihih prasthaapitaani

praayashstaani, sanhrityaikamidamrthashastram kritam ||”

The sentence reads, ‘To achieve the wealth that has yet not, achieved and to maintain the wealth
that has been achieved, the, older texts on the same subjects has been referred and an

abstract compilation has been written.’

Moreover, “Manushyanaam Vritirartha | Manushyavati bhumirarthah | Tasyaah prithivyaa

labhapalanopayah shastramarthashastramiti |”

The sloka conveys the meaning of Arthashastra in a simple manner saying, the profession of
common people is Artha. The land related to the profession of people is called Artha, so the

scripture that teaches about the procedures of getting land (as wealth) and maintaining the same is
known as Arthashastra.

Kautilya Arthashastra is a book of statecraft, that emphasized Artha Neeti which is generally known
as the Science of Economics, although Arthashastra is having a multidimensional analysis of socio-
cultural-economical standard of a state.

Artha as manifested by Kautilya is one of the 3 pursuits (Dharma, Artha and Kama) of Moksha and
signifies much more than only ‘wealth’, where material wellbeing is just a part of this study.
Kautilyan perspective of Artha is much broader in sense and deeper in connotation.

Folks, what comes to our mind when we talk about managing our finances! Struggling, Tiring, Boring
& Scary? Isn’t it?

I think it requires deep understanding to get our finance on track. With so many financial apps &
options, we tend to get confused on what exactly to root for. As they say, more the options, more
the confusion.

Anyway, the solution lies somewhere b/w the 2nd century BCE and 3rd century CE. Let’s take a
reverse gear and understand the beautifully written Arthashastra, written by none other than
Chanakya aka Kautalya, who was instrumental in establishing the reign of the great king
Chandragupta Maurya (r. c. 321-c.297 BCE), founder of the Mauryan Empire (322-185 BCE).

Well, the problem is, we haven’t looked for the right mentor to manage our finances.

The 6,000 sutras given in the Arthashastra itself reveal so many secrets of getting rich, being one of
India’s finest contributions to the world.
“Easy to learn and understand, precise in doctrine, sense and word, free from prolixity of text, thus
has this work (Arthashastra) on the science been composed by Kautilya” (1.1.19)

Let’s demystify the real Artha in Arthashastra & its financial models in 4 easy steps for our GenZ:

1. Wealth identification: The primary step is to identify where money will come from. Using our
talent, developing our inner capabilities, learn new skills, get educated will definitely lead to
unexplored opportunities. Today is all about specialization, right! So go out and explore what
you really like the most & help that to leverage some finances for you.

2. Wealth Creation: Just because we are good at something doesn’t mean we will earn from it.
Working hard to create wealth is the most important aspect. One should have never say
never attitude in order to create wealth.

3. Wealth Management: Hold on, calm down! The crucial and pivotal point is managing what
you are creating which can shape your finances & helps you sleep better. So, choose your
financial GURU wisely, before jumping to any of the crypto, mutual funds, stocks and what
not! Anyway, there is no dearth of options.

4. Wealth Distribution: Saving and investing your money doesn’t mean you should not spend at
all. There is no point in becoming a miser. Charity begins at home, right. Then, the
subsequent step is how you can give back to society, that’s what we call Personal Social
Responsibility (PSR).

Let’s embrace these meaningful lessons from Chanakya which will help us to understand how to
manage our finances in a sound way.
 Wealth
Wealth
Identification
Creation

Wealth
Wealth
Management
Distribution

 Wealth creation is crucial for establishing a welfare state.

 The root of wealth is economic activity and in the absence of fruitful economic activity, both
current prosperity and future growth are in danger of destruction
 Kautilya holds that wealth and wealth alone is important, in as much as charity and desire
depend upon wealth for their realisation.
 Wealth creation is crucial for establishing a welfare state.
 The root of wealth is economic activity and in the absence of fruitful economic activity, both
current prosperity and future growth are in danger of destruction.
 Ideally, the government should collect taxes like a honeybee that sucks just the right amount
of honey from the flower so that both can survive.
 That which remains after deducting all the expenditures already incurred and excluding all
revenues to be realised is net balance (nivi), which may have been either just realised or
brought forward.
 Taxation by the state should take into consideration the conditions necessary for ensuring
the stability and welfare of the taxpayer.
 The Chief Controller of Trading should generate profit and avoid losses.
 Total salary bill of the state should not be more than one-fourth (25%) of the revenue of the
State.
 King with a depleted treasury eats into the very vitality of the country.
 The wealth of the State is the totality of the surplus stored in the King's treasury, the
commodity warehouse, the granary, the store for forest produce and the ordnance depots.
Of these, the treasury is the most important; the King is advised to devote his best attention
to it, because all the activities of the state depend on it.
 The treasury is ranked above the army because the army is dependent on finance; in the
absence of resources, a (disaffected) army goes over to the enemy or even kills the King.
 The best treasury is one that has gold, silver, precious stones, and gold coins. It should be
large enough to enable the country to withstand even a long period of calamities when
there can be no income.
 A King who found himself in financial difficulties could collect additional revenue by special
methods.
 The aim of an elaborate structure of punishments was not merely to maintain order but also
to collect revenue.
Artha has been regarded as one of the trivarga or 3 goals of human existence, the other two being
dharma & kama

For Kautilya, Artha is the most important of the three goals.