Nizam Treasury And Development
Asaf Jah I, the first Nizam of Hyderabad, emphasized the clear separation between the Nizam’s personal treasury and the state revenue. This was a progressive step that demonstrated his understanding of responsible governance. By doing so, he ensured that funds meant for the administration, development of Hyderabad, and welfare of its people were not misused for personal luxuries.
The first Nizam of Hyderabad was Asaf Jah I, originally named Qamar-ud-din Khan. He founded the Asaf Jahi dynasty and ruled the Deccan region, including Hyderabad, effectively establishing it as an autonomous state in 1724. Asaf Jah I held important positions under the Mughal emperors, especially under Aurangzeb. He gained administrative and military experience during this time.
Mughal power declined, after the death of Aurangzeb in 1707. Qamar-ud-din Khan (before his name was changed to Asaf Jah 1) observed how Hyderabad and the Deccan region was neglected. Asaf Jah I took advantage of a situation and asserted his independence in the Deccan region, becoming the Subedar of the Deccan in name, but effectively ruling as an independent monarch. This marked the beginning of the Hyderabad State under the Nizams. Taking over as the first Nizam of Hyderabad, Asaf Jah 1, laid out a path for the development of Hyderabad.
Asaf Jah I, the first Nizam of Hyderabad, set up well-structured procedures for revenue collection as part of his efforts to build a stable and effective administration. Asaf Jah I introduced systematic procedures to assess and collect land revenue, which was the primary source of income for the state. He ensured that records were maintained accurately and that assessments were realistic and not burdensome on the peasants.
The system included checks to prevent misuse or diversion of funds, ensuring that revenues collected from the people were directed toward administrative costs, development work, and public welfare. While many reports highlight the personal wealth and prosperity of the Nizams, the fact that the first Nizam implemented processes to differentiate between funds meant for the development of Hyderabad and funds, that were directed to the Nizam's treasury, is often not mentioned.
This policy allowed for better financial planning and accountability. It helped build infrastructure, support public welfare projects, and strengthen the state's institutions. The distinction also reflected his commitment to public service rather than treating the region merely as a personal domain of wealth accumulation.
Such fiscal clarity laid the foundation for the future Nizams, who inherited not just a wealthy state but also a tradition of structured and welfare-oriented administration. In essence, Asaf Jah I’s revenue system laid the foundation for financial stability in the Hyderabad state, allowing future Nizams to focus on development, culture, and administration. His vision and administrative skills were key to transforming Hyderabad into a prosperous and well-governed region.