UPSC CSE Pre 2016

Vijayanagara Economic Policy

Authentic Past Paper Standard Evaluation

Regarding the taxation system of Krishna Deva, the ruler of Vijayanagar, consider the following statements: 1. The tax rate on land was fixed depending on the quality of the land. 2. Private owners of workshops paid an industries tax. Which of the statements given above is/are correct?

Solution & Analysis

Answer: C

Concept Krishna Deva Raya’s administration was known for its sophisticated and diverse revenue model. This allowed the empire to maintain its vast military and cultural grandeur through a fair but comprehensive tax system.

Explanation The state categorized land based on fertility and crop type to determine the tax rate. Additionally, the economy was not just agrarian; private workshops and industries (like weaving and metallurgy) were also subject to a specific 'industries tax' or professional tax.

Logical Breakup
Logic 1 (Statement 1): Correct. Revenue assessment was scientific—wet lands, dry lands, and garden lands had different tax structures to ensure farmers weren't over-taxed during bad harvests.
Logic 2 (Statement 2): Correct. Artisans and workshop owners were part of the formal economy and contributed to the state treasury through professional taxes, alongside income from ports and customs.

Active Recall

Question

Besides land and industry, what were other revenue sources for Vijayanagara?

Answer

Other sources included customs duties at ports, tributes from vassal chiefs, and taxes on various professional services.

Core Insight

The use of land-quality-based taxation shows that Vijayanagara had a highly organized bureaucracy capable of detailed surveying and assessment.