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U.P.P.C.S. Prelims 1996

Ancient Fiscal Policy

Authentic Past Paper Standard Evaluation

'Bhaga' and 'Bali' were:

Solution & Analysis

Answer: B

Concept Ancient Indian states relied on a structured taxation system, primarily derived from agricultural produce and voluntary or mandatory tributes.

Explanation According to the Arthashastra and Vedic texts, 'Bhaga' was the King's share of the produce (usually 1/6th), and 'Bali' was originally a voluntary religious offering that became a mandatory tax over time.

Logical Breakup
Bhaga: The standard land revenue or 'share' of the harvest paid to the state.
Bali: A tribute or tax. In the Asokan Rummindei inscription, Asoka abolished the 'Bali' for the Buddha's birthplace.

Active Recall

Question

What was the significance of the 1/6th share (Bhaga)?

Answer

It was considered the 'legitimate' price paid by subjects to the King in exchange for protection (Rakshana).

Core Insight

The presence of distinct terms like Bhaga and Bali shows that ancient Indian states had a sophisticated understanding of different types of fiscal obligations (direct tax vs. tribute).

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