NEW DELHI - In preparing some of his fiscal proposals, Finance Minister Pranab Mukherjee found inspiration in Mahatma Gandhi and Kautilya, both of whom he quoted in his budget speech Monday.

In concluding his budget speech, Mukherjee turned to the Father of the Nation.

“Mahatma Gandhi said and I quote, ‘Democracy is the art and science of mobilising the entire physical, economic and spiritual resources of various sections of the people in the service of the common good of all.’

“This is precisely what we will have to do. With strong hearts, enlightened minds and willing hands, we will have to overcome all odds and remove all obstacles to create a brave new India of our dreams,” the finance minister said.

Earlier in his speech, he quoted Kautilya, the pragmatist strategist from third century BC and author of the Sanskrit treatise on political science “Arthshastra”.

Pointing out that the short-term fiscal stimulus has to be balanced against long-term prudence and fiscal sustainability objectives, Mukherjee quoted Kautilya: “In the interest of the prosperity of the country, a king shall be diligent in foreseeing the possibility of calamities, try to avert them before they arise, overcome those which happen, remove all obstructions to economic activity and prevent loss of revenue to the state.”

He then added: “I intend to take Kautilyas advice and return to the FRBM [Fiscal Responsibility and Budget Management Act] target for fiscal deficit at the earliest and as soon as the negative effects of the global crisis on the Indian economy have been overcome.”

Before turning to his tax proposals, Mukherjee said: “I cannot resist the temptation of re-visiting Kautilya. He said and I quote, ‘Just as one plucks fruits from a garden as they ripen, so shall a King have revenue collected as it becomes due. Just as one does not collect unripe fruits, he shall avoid taking wealth that is not due because that will make the people angry and spoil the very sources of revenue’.