Economic Policy of Chhatrapati Shivaji Maharaj

Economic Policy of Chhatrapati Shivaji Maharaj

In a modern state, there are numerous sources of income such as taxation, fees, fines, public loans, grants, and customs duties. However, this was not the case in the seventeenth century. During the reign of Chhatrapati Shivaji Maharaj, states had to depend on limited internal resources to meet their administrative and military expenses.

Shivaji Maharaj founded a newly born and relatively small state with scarce resources. Despite this limitation, he displayed exceptional administrative skill and financial prudence. His primary objective was to strengthen Swarajya without imposing excessive financial burdens on his subjects.

Booty and Tribute

The most significant source of revenue for the Maratha state was booty and tribute obtained through military campaigns. Shivaji Maharaj frequently invaded enemy territories—particularly those of the Mughals and the Adilshahi Sultanate of Bijapur—to secure funds for administration and defense.

The victory over Afzalkhan yielded immense wealth, including elephants, Arabian horses, camels, precious jewelry, gold, cash, weapons, and military equipment. Such resources were crucial for the survival and expansion of Swarajya.

The plunder of Surat stands as a major example. Shivaji Maharaj targeted wealthy merchants rather than common citizens. Women, children, the poor, and religious institutions were strictly protected. The collected booty was used solely for state-building purposes.

Land Revenue System

Land revenue was the most stable source of income after booty and tribute. It was known as Rajbhag, the king’s share of agricultural produce. The state’s share was fixed at approximately two-fifths or one-third of the produce value.

A systematic land survey was conducted under the supervision of Annaji Datto, the Peshwa. Revenue assessment was based on average agricultural output over three years, ensuring fairness to cultivators. This prevented exploitation, especially during poor harvests.

Taxation Policy

Shivaji Maharaj imposed taxes cautiously and only when necessary. The burden on farmers and common people was deliberately kept minimal. Revenue was collected efficiently through village officials such as Patils and Deshmukhs.

• Government Dues: Inampatti, Miraspatti, Deshmukhpatti, Sardeshmukhpatti
• Professional Taxes: Telpatti, Sarafpatti, Hejbatti, Vethbegari

Indirect Taxes and Customs Duties

Customs duties formed an important component of state revenue. Major ports such as Chaul, Dabhol, Vengurla, Rajapur, and Ratnagiri were active centers of trade.

Import-export duties and transit taxes were levied on foreign goods. The customs tax, known as Jakat, was one of the most significant and reliable sources of income.

Other Sources of Income

• Gifts and tributes from nobles, envoys, and subordinate rulers
• Judicial fines and penalties imposed on lawbreakers
• Income from minting coins through licensed mints

In conclusion, Shivaji Maharaj’s economic policy was marked by fiscal discipline, justice, and foresight. His financial system supported military expansion while safeguarding the welfare of his people, laying a strong foundation for Swarajya.