CHAPTER -1

Research Design and Methodology

1. Introd.~ction:

India is a sacred land of temples: from Cape Comorin to the Himalayas, the

whole of Eharatavarsha is studded with innumerable temples. Temple worship is a

very old culture in India. It is not possible to trace the origin of temples. The

temples sewed as centres for not only the dissemination of spiritual knowledge but

also in enlightening the public about the importance of spiritual values in every walk

of life. The socio-economic life of the community came within the purview of the

holy place in various ways. Similar to the modern business institutions, temples

with their huge wealth, properties, regular flow of income and various items of

expenditure functioned as any other economic institution. Temples in general have

been following a pragmatic and a philanthrophic policy in their monetary

transactions. Assets and liabilities related to the temple were mairftained by the

temple treasury which was under the custody of temple committee. To enhance

the revenue of the temple, several methods were followed. Thus religious

institutions have emerged successfully as financial institutions. As an institution,

temple requires a variety of commodities and services for its day-to-day activities.

The items csnstantly required by the temple are rice, grams, pulses, turmeric,

pepper, jaggery, salt, betel-leaves, camphor, kum-kum, coconut, fruits, milk, ghee,

butter, curd, oil, honey etc. Not only food articles but other items like cloth, jewels,

gold, silver and brass vessels, metal lamps, bells, incense sticks etc are needed for

the temple. I n short, temple is the most important consumer in the area where it is

located. It stimulates and encourages local trade and industry. The construction,

maintenance, daily routine services and administration of tembles have offered

employment to many. One of the sources of income to the temples is lease rentals

from its own agricultural lands. From the economic point of view, temple is a big

landlord. The temples had been centres of learning from time immemorial.

Inscriptions on the walls and pillars of many temples present full details of the

history of the temples. The temples have started giving importance to economic

and social upliftment of the society. They have concentrated on the material and

spiritual welfare of all classes of people in the locality. Thus temples, in short,

combined the functions of a social institution, the historical preserver of art and

architecture and the promoter of culture and national integration. I n fact, they

bring the people of different parts of the country together and make them feel that

they form one nation with a common goal of life. I t may be summed up that

temples serve as financial institutions; consumers; employers; landlords; centres of

learning; economic entity etc. There are other religious organistions like the Muslim

Wakf Boards, Christian Churches, Sikh Gurudhwaras etc. in the country.

Among ;he Hindu religious institutions, Tirumala Tirupati Devasthanams (ITD)

is considered to be the biggest religious institution in India. I t is the biggest

institution from the point of view of number of pilgrims it attracts, the number and

variety of functions and festivals i t performs, the magnitude of incorrie it earns and

the quantum of expenditure it incurs every year. I n other words, it is the greatest

earner and spender and has become an economic unit of considerable significance in

the country. The activities of the TTD are not only confined to the propagation of

Hindu religion but also launching various schemes and programmes for the social

upliftment of the people in the country. The income and expenditure of the TTD has

been rapidly growing in recent years. Hence, an attempt is made to carry out a
detailed study of the finances of the TTD during the period 1989-98 as there is no

particular empirical study on this theme.

2. Review of literature:

Krishnaswamy lyengarl examined the mode of worship, festivals and rituals

practised in temples. The historical evaluation of the Tirumala temple and its

administration were also studied. Rama ~ a o * made an attempt to study the

temples of Tirumala, Tirupati and Tiruchanoor based on the inscriptions found in

temples and puranic sources. The author presented the history of each temple,

important monuments and their architectural features and artistic contents. sitapati3

made a study of the history of temples and deities at Tirumala. The author also

reviewed the different festivals and customs that were being practised in temples.

~amalanathan~
carried out research on the historical significance and

administration of Tirumala temples in the late sixties. I n his study,

veeraraghavacharya5 presented the history of Tirupati in three volumes. The first

two volumes contain details of the development of Tirumala temple chronologically

under the patronage of various kings and sages while the third volume deals with

temple rituals and mode of worship. ~arneshan~ examined the historical

background, epigraphical evidences, grchitectural and sculptural importance,

festivals and rituals of Tirumala temple. He found that in the early days of the

Christian e v , the Tirumala hill, but not the temple, was held sacred, The author

had focussed attention on the administration of the temple; the economics of

offerings to the Lords; the system of tenure and crop sharing; conduct of fairs,

festivals and distribution of prasadams; modes of capital investment etc during the

Vijayanagara period. The author stressed the need for a detailed study of five

hundred years of Vijayanagara rule based on the evidence of epigraphs of the

temple. He made it clear that the shrines at Tirumala are the best examples of

temples that are living institutions.

Sri Sadu Subramanya sastriI7 a renowned epigraphist of the TTD, reported at

length about the historical and religious significance of Tirumala temple. He

explained how the rulers have offered royal benefaction for the management of

temples at different periods. am an,^ an internationally known archaeologist and

art historian, conducted an enquiry into the sculptural and iconographic wealth of

temples cf Tirumala, Tirupati and Tiruchanoor. The temple and deity are two

inseparable entities like the body and the soul. The hoary temples are not only

sacred places of worship but also great centres of fairs and festivals, art and

architecture, music and dance. The temples of Tirumala and Tirupati are known for

their long and eventful history and architectural beauty. They received unparalleled

patronage during the illustrious rule of the Vijayanagara kings. He concluded that

the Tirumaia and Tirupati temples can be considered as one of the chief centres of

the school nf art and sculpture along with Hampi, Kanchi, Chandragiri and other

places in South India. varadacharyg reviewed certain important aspects of the

temple of L.ord Venkateswara and its sacred environs. The author has also covered

historical facts about the galigopuram, Varaha and Narasimha st-~rines,kalyana

mandapani, swarna Ananda Nilaya Vimanam, Swami Pushkarini, Ranganatha

Mandapam, Tirumala Raya Mandapam, Anga Pradakshinam, Dhvajasthambham,

Bangaaru Vaakili, Sri Garudalvar, Ramar Medai, Kulasekhara padi, Idol of Sri

Venkateswaraswamy, Bangaru Baavi, Akhilandam, Poola Baavi etc. The author has

listed thirty apacharas which one shall not commit in a place of worship.

Anna ~ a o " conducted a study on the administration of temples. I t i e author

dealt with the utilisation of temple funds for social progress, code of conduct for
temple servants, worshippers, trustees, archakas and other religious officers, daily

puja kramam, accommodation, darshanam, religious kalakshepams etc. The author

has pointed out that temples not only sewed as religious institutions but acted as

potent factors in the social and educational progress of the nation. They are the

centres of qeat spiritual forces and social advancement. They are the sources of

solace to distressed minds and of support to needy bodies. He is of the opinion that

money got from the people should be spent for the benefit of the people. The

author has examined the working of various temples in North India and made

suggestions for their better functioning. The third part of the study exclusively

highlighted the history and growth of the TTD. The issues reviewed include ritual

worship in the temples; early history of the TTD; management under state acts;

sanitation; medical aid; water supply; canteens; transport; education etc. The

author has recommended the prohibition of begging; elimination of middlemen;

promotion of the employees on the basis of seniority; creation of reserve fund;

establishment of yoga centre, college for ayurveda, unani and homeopathy; running

of kalyanakatta on sound lines; reorganisation of the T D co-operative stores;

improvement of sanitary conditions; establishment of cottage industries to meet the

requirements of pilgrims; reorganisation c~fprinting press; accounting and auditing;

speedy adjustment of advances; installation of suggestion boxes; and distinct

statutory position to the l T D .

Rama ~ k v i ' ' conducted a study on the administration of the I T D . Her

observations include: the TTD Act of 1979, which was passed for better

administration and governance, failed to yield fruifful results; contribution of Rs.25

lakhs towards the endowments administration fund is unnecessary; contribution of

Rs.75 lakhs towards common good fund is not in accordance with the Act;
renovation of monuments was undertaken overlooking the technical aspects; there

is no need for statutory decentralisation of some of the powers of the Executive

Officer (EC') to the level below him; sanitation is on improper lines; and vigilance

officers failed to provide adequate security to pilgrims. The study recommended

the establishment of an All India Vedic Institution of Higher Study and Research

under Sri Venkateswara Sishtachara Vidya Samsta; redesignation of the post of EO

as Commissioner and that of the Commissioner of Endowments as Director of

Endowments; extension of the tenure of EO to 5 years; setting up of consultative

committees for each department; operation of buses for the transportation of

pilgrims by the TTD instead of Andhra Pradesh (AP) State Road Transport

Corporation; laying down of a rope way from Chandragiri to Tirumala; creation of

more ashrams with saints than modern cottages with officials; consulting an

archaeologist, a sthapathy and an agama pandit whenever renovation of

monument:; is to be undertaken; organisation of training classes to employees;

strengthen ng of the accounts department; preventing political interference in the

affairs of tl-re TTD; and making the TTD confine itself to religious duties instead of

frittering away its energies and resources in rendering services of a secular nature.

subramanyaml2 analysed the personnel management practices of the TTD.

The authol rcported that there is no personnel department to look after personnel,

their service conditions, complaints etc, and that there are no specific procedures,

principles of placement, job evaluation techniques etc. Further, he observed that

there is no department to look after wage and salary administration. Promotions

were effected only on the basis of seniority but not on merit-cum-seniority, There is

no systematic method of implementation of incentive schemes. The author offered a

number of suggestions such as: creation of a separate department of pers~nnel

management; undertaking extensive orientation or induction programmes; evolving

suitable placement policies to equip the personnel to be posted in new assignments;

introduction of job evaluation system; provision of regular pre-job and on the job-

training to employees; adopting a promotion policy at lower levels on seniority while

a t higher levels on merit or merit-cum-seniority; a consistent policy should be

followed on ~ransfers;incentives should be provided on a par with State Government

employees; a joint consultative council should be set up; periodical survey of job

satisfaction among employees should be conducted; and management by objectives

and critical indent method should be introduced.

Bhaskara ~ a i d u studied
'~ the employer-employee relations in the TTD. He

dealt with the recognition of unions; inter-union and intra-union rivalries; employees'

participation in union activities; political affiliation of unions; social relations between

employees and management; settlement of disputes between employees and

management; collective bargaining agreements; grievance handling procedures;

participative management; and employee welfare programmes. For a smooth and

cordial relationship between employer and employee, the following suggestions

were made: the employees should be motivated to participate actively in the

organisational, educational, cultural, recreational and other activities; the union

leaders and their activities should be insulated from political influences; orientation

and refresher courses should be conducted for employees; a separate welfare

department should be set up; a welfare officer with specialised education,

knowledge, training and experience in personnel management should be appointed;

an additional joint welfare officer should be appointed; an employee welfare

advisory committee should be constituted; employees' representatives should be

nominated to the board of trustees; employees should participate in management

schemes; a separate grievance handling cell should be formed; depattmental

advisory committees should be established; funds should be allocated for employee

welfare measures; and employees should be inducted.

subbaramaiah14 conducted a research-based study of an Indian temple with

reference tc~the lTD. The study period is confined to 12 years from 1951 to 1963.

He assessed the revenue and expenditure pattern of the TTD. The author

concluded that as the TTD is not only an enormous public institution but also tended

to be an affluent institution, it calls for vision and dynamism in formulating

expenditure policies and expanding the administration to carry out the programmes

according to schedule. Largely, because of the limited expansion of the TTD

administration, too much centralisation of authority, inadequacy of personnel and

lack of effective communication and coordination, the 1TD not only failed to

implement its capital programmes but also developed an alleged-built-in capacity for

discourtesy. After this study, there had been a number of remarkable changes in

the structural, organisational, administrative and financial matters of the TTD.

Bhaskara ~ a o reviewed
'~ the organisational pattern and management of personnel

in religious institutions with special reference to the l T D . Besides, he also examined

the trends in income and expenditure of the TTD from 1973-74 to 1982-83. The

author covered policy aspects like diversion of surplus funds of the TTD to the

treasury of Government of AP. The author has advocated the following:

introduction of cost accounting system; permanent exemption from payment of

income tax; investment in the interest bearing loans of the AP State Financial

Corporation and the AP Industrial Development Corporation; amendment to l T D Act

of 1979; and use of computers in administration. The author has studied

organisational pattern intensively and extensively. The income and expenditure

trends were reviewed peripherally in only one chapter. This is neither a

comprehensive nor a detailed study on the finances of the lTD.

anth ant hi'^ made an investigation into the income and expenditure of the
l T D . The period of study is restricted to 11years from 1985 to 1995. The author

has arrived at the following conclusions: the revenue receipts and payments

increased significantly; the rate of increase in the former is higher than that of the

latter; the revenue receipts are not uniform for all the departments; the major

sources of revenue receipts are interest on investments, sale of prasadams and

arjitham receipts; the important items of revenue expenditure are salaries and

wages, purchase of materials etc. The recommendations of the study include:

standardised formats for consolidated revenue receipts and payments should be

evolved; standardised forms for accounts are to be designed for individual

departments; receipts and payments are to be periodically reported to central office;

arjitha seva and prasadam rates are to be enhanced; work is to be properly

allocated among the employees and evaluated; accommodation rents are to be

increased; timely decisions are to be taken to avoid cost escalation; bank deposits

are to be consolidated; and grants to other institutions should be reduced in a

phased manner. The author has only presented the facts and figures about the

receipts and payments, especially of revenue, that too at the aggregate level. The

author has failed to give a full insight into the finances of the TTD. The overall

financial position of the 7TD; capital receipts and payments; examination of audit

objections; evaluation of expenditure on religion, pilgrims, voluntary activities; asset

holding capacity; mix of deposits and advances; investments pattern and fund flow

analysis are missing. Further, analysis and interpretation of quantitative information

with the help of appropriate statistical tools are absent. Finally, both inherent and

apparent issues were not highlighted at all.

~ . ~ . ~ . ~ h a g a v aconducted
n'~ an enquiry into the finances of educational

institutions of the TTD. The period of study is confined to 10 years from 1982 to

1991. The findings include: the share of receipts to education in the total receipts of

the P T D is less than 4 per cent; among the sources of income to the educational

institutions, State Government grants constitute more than 75 per cent; over 79 per

cent of receipts to education is from public sources; revenue receipts have a lion's

share in the income of educational institutions of the TTD; fee per student is

remarkably greater in higher education; the proportion of educationai expenditure in

the total expenditure of the l T D is below 10 per cent; of the total expenditure on

education, salary accounts for more than three-fourths; the proportion of revenue

expenditure is over 95 per cent of the total educational expenditure; and the unit

cost of education was Rs. 872 in 1982 as compared to Rs.2,619 in 1991. The author

has also made a detailed comparative study on the sources of income and pattern

of expenditure of Sri Venkateswara Arts'College (SVAC) and Sri Govindarajaswamy

Arts College (SGAC). The author has concluded that the share each of the

aforesaid in the receipts for higher education is less than 30 per cent. The

proportion of SVAC and SGAC in the total expenditure on higher educlrtion is below

27 per cent and 20 per cent respectively. Of the items of cost per student, teacher

cost is prominent. The non-recurring cost is insignificant when compared to

recurring cost. Finally, the author concluded that the TTD has evinced not only keen

interest in managing its institutions on very sound lines in terms of financial

assistance bklt also made remarkable contributions in looking after the welfare of

teachers as well as non-teachers by implementing multitudinous schemes in a

manner unparalleled by other educational institutions either private or government

managed. The recommendations include: State Government should release grants

within the prescribed time frame; colleges should initiate measures to minimise the

expenditure so as to comply with the slab system of the State Government; unaided

posts should be converted into grants-in-aid posts; to obtain grants from the

government, deputations should be avoided; pilgrim compensatory allowance to the

employees should be withdrawn; capital grants from the government should be

secured; UGC funds should be utilised according to the norms laid down by it; new

courses should be started with the concurrence of the government; there should be

better co-ordination between the colleges and the l T D ; and educational loans

should be provided to students. This evaluative study is confined to only the

finances of educational institutions of the TTD.

~ i j a ~ a m b a lorganised
'~ a study on the economics of Thiruchengodu

Arthanareeswarar temple situated in Tamil Nadu, adjoining the state of AP. The

period of study is confined to 10 years from 1978 to 1987. The author has

examined the history and economic aspects of the temple. The sources of income,

pattern of expenditure, deposits, advances and investments are evaluated. The

author has concluded that the temple is not spending anything on welfare activities,

All the income is spent on the maintenance of the temple only, Hence,

developmental activity is almost stagnant. ~andaswami'~carried out an empirical

study on the financial management of Palani temple, located in Tamil Nadu. The

period of study is 25 years from 1963 to 1987. The author has reviewed the history

of the temple; administration during the rule of various dynasties, the British regime

and after independence; geographical location of the temple; potential power of the

deity; and the socio-economic conditions of the people living in and around the
temple town. Further, the author has analysed the sources of income, pattern of

expenditure, deposits, advances and budgetary control. He pointed out that though

the temple is exempted from payment of income tax, license fee and municipal

taxes are collected. Furthermore, the author has emphasised that there is an urgent

need to pay proper attention to welfare activities aimed at promoting employee

welfare, providing basic amenities to devotees and enhancement of rates for various

seva tickets and prasadams.

3. Need fpr the study:

The preceding analysis reveals that there are a number of studies on the

historical, religious, archaeological, sculptural, epigraphical, organisational, personnel

and managerial aspects of the TTD and other temples in the country. But only a

few studies are found on the finances of religious institutions, particularly those of

the TTD. Further, there is no specific evaluative and analytical study covering only

the finances of the TTD in detail in the recent past. I n view of these gaps in the

existing literature, there is an urgent need to carry out a detailed study on the

finances of the TTD. I n addition, the researcher was born and brought up in

Tirupati. Her father has served the TTD for more than 30 years in various capacities

and retired recently as Deputy Executive Officer. Her mother is still working in the

TTD. She studied up to graduation in the educational institutions run by the TTD.

She also worked in a college managed by the TTD for a few years on part-time

basis. Thus, she knows men and matters in the TTD. These have further prompted

her to make an earnest attempt to study the finances of the TTD in the recent past

to avoid the gaps in the literature.

4. Present study:

A synoptic view of this study is presented in the following section.

4.1 Objectives : The specific objectives of the study are:

i. to examine the financial administration of the TTD;

ii. to analyse the sources, magnitude and trends in the growth of income of the

-ITD;

ii~. to evaluate the expenditure of the TTD in terms of objectives, patterns,

magnitude and trends in progress; and

iv. to study the unit cost, surplus, assets and liabilities of the TTD.

4.2 Data collection : The present investigation is carried out on the basis of

documentary evidence. First hand information relating to number o f schools,

colleges and other institutions, strength of employees etc has been obtained from

the records of the TTD. Secondary data has been collected from various records,

administrative reports, budgets, audit reports, books, articles etc.

4.3 Use of deflators : The revenue, expenditure, surplus, deposits, advances

etc, of the TTD are analysed at constant prices. Money costs increased due to

phenomenal increase in prices. Hence, it is desirable to measure them in real terms.

This has to be carried out with the help of price-deflators. I t is unfortunate that, in

spite of a long-felt need, no specialised index numbers of prices for activities other

than the general economic situation and consumerts welfare are available for the

whole of India, much less for a part of the country, I n the present study, financial

data is deflated by adopting whole-sale price indices (WPIs). The average index of

whole-sale prices is adjusted for the base year 1981 as 100. The WPIs for 1989

stood at 154.70. I n other words, if we deflate factors such as revenue, mentioned

earlier, by this price-deflator, then their real level will be reduced by 54.70 per cent

in 1989 at constant price (1981=100). The indices are furnished in Annexure.

Another important consideration in the conversion of monetary figures from current

prices to constant prices was the selection of base year, which measures price

effect. Generally, it should be a normal year. I n the present investigation, 1981 is

taken as base year.

4.4 Statistical tools of analysis : In the present research study, various

statistical tools such as co-efficient of variation (CV), compound growth rate (CGR),

student's t-test for testing the significant difference between two CGRs, student's t-

test for testing the significant difference between two sample means, correlation

coefficient and Analysis of Variance (ANOVA) for one way classified data were

applied to analyse and interpret the empirical data on the receipts and expenditure

of the TTD for the period 1989-98. Funds flow statement was prepared to assess the

management of funds in the l T D , The time series data on receipts and expenditure

are deflated with the help of WPIs for the corresponding years.

4.5 Reference period : The reference period of the study is spread over 10

years, that is, from 1989 to 1998.

4.6 Scope and limitations : The study has made use of available data only.

The present study is not free from limitations. In spite of the best efforts of the

researcher, certain data could not be collected because of non-availability of the

relevant iecdrds. For example, detailed information relating to investments,

prasadarn-wise expenditure, cash book etc is not available despite sincere efforts put

in by the researcher. The core area of study is restricted to the finarlcial analysis of

the TTD. The issues primarily taken up for the study are those concerning sources

and uses of funds. An attempt is made to examine these on a general plane and to

illustrate the ideas developed with the help of basic data. Hence, we propose to

consider the study not only as presentation of facts about the finances of the TTD
but also to treat it as economics of religious institutions with specific reference to the

TTD .

4.7 Chapter outline : The thesis is organised into seven chapters. The first

chapter is introductory in nature while the last one contains a summary of findings

and conclusions. The middle five chapters analyse the finances of the TTD. The first

chapter deals with the research design and methodology of the study including

review of available literature concerning the theme of enquiry as discussed earlier.

The second chapter describes the profile and progress of the l T D . The financial

administration of the TPD in terms of organisational structure, budgeting,

accounting, auditing etc is discussed in the third chapter. The sources, magnitude

and trends in the growth of income of the TTD are analysed in the fourth chapter.

The fifth chapter evaluates the objectives, pattern, magnitude and trends in the

progress of expenditure of the TTD. The unit cost, surplus, assets, liabilities in

terms of deposits with the TTD and sources of funds and the manner in which they

are spent are provided in the penultimate chapter. The summary and conclusions

emanating from the study are presented in the last chapter. The issues for further

research in future are also incorporated. ,

REFERENCES :

1 S.Krishnaswamy Iyengar, Historv of Tirupati, TTD, Tirupati, 1939.

2. M. Rama Rao, The Temples of Tirumala, Tirupati and Tiruchanoor, TTD,

Tirupati, 1963.

3. P. Sitapati, Sri Venkateswara : The Lord of Seven Hills, Bharatiya Vidya

Bhavan, Bombay, 1968.

4, K.Kamalanathan, History and Administration of Tirumala Temple, Ph.D., thesis

subrr,iXed to Madras University, Madras, 1969.

5. T.K.T.Veeraraghavacharya, History of Tiru~ati,TTD, Tirupati, 1977.

6. N.Rameshan, The Tirumala Temple, TTD, Tirupati, 1981.

7. S.Subramanya Sastri, Tirupati Sri Venkateswara, V D , Tirupati, 1981.

K.V.t?aman, Sculpture Art of Tirumala Tirupati Te'mple, lTD, Tirupati, 1993.

T.Varadachary, Tirumala: The Panorama of Seven Hills, TTD,

Tirupati, 1999.

C.Anna Rao, Administration of Temples, TTD, Tirupati, 1977.

R.G,Rama Devi, Administration of lTD, Ph.D., thesis submitted to Sri

Venkateswara University, Tirupati, 1984.

J.Subramanyam, Personnel Manaqement in TTD, Ph,D., thesis submitted to Sri

Venkateswara University, Tirupati, 1987.

S.Bkaskara Naidu, Employer-Employee Relations in TTD, Ph.D., thesis

submitted to Sri Venkateswara University, Tirupati, 1991,

S.Subbaramaiah, Finances of an Indian Temple : A Case Studv of the Finances

of the TTD 1951-63, International Book Company, Jullandar, 1968.

V.K.Bhaskara Rao, Orqanisational and Financial Manaqement of Reliqious

Institutions with S~ecialReference to TTD, Deep and Deep Publications, New
Delhi, 1985.

A.B.Santhi, Income and Expenditure Analvsis of Tirumala Tirupati

Devasthanams, Ph.D., thesis submitted to Sri Venkateswara University,
Tirupati, 1994.

S.G.S.Bhagavan, Finances of the TTD Educational Institutions, Ph.D., thesis

submitted to Sri Venkateswara University, Tirupati, 1995,

V.Vijayambal, Economics of Thiruchenaodu Arthanareeswarar Temple, M.Phil

dissertation submitted to Madras University, Madras, 1989.

N.Kandaswami, The Financial Manaqernent of a South Indian Temple : A Case

Stud!/ of Palani Temple, Ph.D., thesis submitted to Madras University, Madras,
1991.