Artha Shastra is a comprehensive treatise on a number of subjects, namely, economics, administration, ethics, diplomacy, etc. It deals with matters concerning: how to earn wealth, spend money, enjoy money and to expend wealth. The author of this great work was Chanakya. He was a non-brahmin from Bihar. He was also called by other names i.e., Kautilya andVishnu Gupta. Vishnu Gupta was the name given to him by his parents. As he was born in the gotra (lineage) of Kautil, he was called Kautilya. He also had ‘Kautilya-cit’, a clever brain and a way of approaching each problem. This also led him to be called Kautilya. As he was born in the village Chanak, he was also called by that name. In the olden days there was a tradition of attaching the name of the village where one was born to one’s own name. So Chanakya got this name as he was born in that village.

Artha Shastra suggests a tax of Rs.4/- on agricultural produce worth Rs.100/- and Rs.6/-on equivalent business income. These work out to be below the existing tax rates. Artha Shastra strongly disapproves of government’s excessive concentration on the cities and neglect of rural areas.

Government must never spend all the money it collects in taxes. Kautilya maintained that some part of the income should be saved to provide for bad times. He did not approve of the practice of debt financing. Similarly householders must not spend in excess of their incomes. The golden formula is 25% of income to be spent on personal needs, 25% given away in charity, 25% for public and social causes and 25% to be saved for bad times, old age etc. The endeavour should be towards self-sufficiency. Businessmen must be devoted to their business even when profits are low. These days, people buy and sell shares to make personal gains. This harms companies and the nation. Government must maintain a buffer stock of food grains, which would be useful in times of poor harvest. Value of man is greater than any amount of wealth. (M, pp. 45-46)