Question

Clarify Kautilya’s thought on state income-expenditure.

Answer 1

Explanation:

Economic Idea # 10. Taxation was one of the most important sources of revenue of the state. It was known as 'rajkar'. ... Taxes were the remuneration for the services rendered by the king as a public functionary for providing internal security to his subjects. Kautilya suggested forced loans for meeting deficit budgets.