Balaji Vishwanath

Balaji Vishwanath Bhat (1662–1720) was one of the most influential statesmen in Maratha history and the first hereditary Peshwa (Prime Minister) of the Maratha Empire under Chhatrapati Shahu Maharaj. He is often credited with laying the political and administrative foundations that transformed the Maratha state from a regional power into an empire capable of challenging the Mughals on a national scale. Known for his diplomatic acumen, financial expertise, and statesmanship, Balaji Vishwanath was instrumental in stabilising the Maratha kingdom during a period of intense internal and external turmoil.

Early Life and Background

Balaji Vishwanath was born around 1662 in the Konkan region of Maharashtra, into a Chitpavan Brahmin family. Little is known about his early life, but he initially worked as a clerk and revenue officer (kamavisdar) under the Maratha chiefs in the Konkan and later under Dhanaji Jadhav, a prominent Maratha general.
His administrative efficiency and financial skills attracted attention, and he gradually rose in rank. During the succession conflict that followed the death of Sambhaji (1689) and the imprisonment of Rajaram’s widow, Tarabai, Balaji’s loyalty and political tact brought him into prominence.

Rise to Power under Shahu

The turning point in Balaji Vishwanath’s career came after the release of Shahu, son of Sambhaji, by the Mughals in 1707. Shahu claimed the Maratha throne, but his claim was contested by Tarabai, the widow of Rajaram, who governed Kolhapur as regent for her son Shivaji II.
A civil war broke out between the two Maratha factions — one loyal to Shahu and the other to Tarabai. During this critical period, Balaji Vishwanath sided with Shahu, helping him consolidate his position against Tarabai’s forces.
Recognising his administrative ability and loyalty, Shahu appointed Balaji Vishwanath as his Senakarta (organiser) in 1711 and later elevated him to the position of Peshwa (Prime Minister) in 1713. This appointment marked the beginning of the Bhat–Peshwa dynasty, which dominated Maratha politics for the next half-century.

Political Situation in the Early 18th Century

When Balaji Vishwanath assumed office, the Maratha state faced grave challenges:

• The empire was divided between Shahu (at Satara) and Tarabai (at Kolhapur).
• The Mughal Empire, though weakened, still occupied large parts of the Deccan.
• The Maratha nobility was divided, and the army had become semi-independent under powerful chiefs.
• Administrative and financial systems had collapsed due to prolonged warfare.

Balaji Vishwanath’s genius lay in his ability to stabilise the kingdom through diplomacy, negotiation, and administrative reform rather than war alone.

Major Achievements

1. Unification of the Maratha FactionsOne of Balaji’s foremost achievements was reconciling the internal divisions among the Marathas.

• He skilfully managed to neutralise Tarabai’s faction by supporting Rajasbai, another wife of Rajaram, and her son Sambhaji II, thereby weakening Tarabai’s position.
• Through a series of alliances and compromises, he restored unity under Shahu’s leadership.

2. Settlement with the Mughals (1719)Perhaps his greatest diplomatic triumph was the treaty with the Mughal Emperor Farrukhsiyar in 1719.

• Balaji Vishwanath personally led a Maratha delegation to Delhi and negotiated terms that legitimised Maratha authority.
• Under this agreement, the Mughals recognised Shahu as the legitimate Maratha ruler and granted the Marathas the right to:
  • Collect Chauth and Sardeshmukhi (taxes amounting to 35% of the revenue) from the six Mughal provinces of the Deccan (Berar, Khandesh, Aurangabad, Hyderabad, Bijapur, and Bidar).
• In return, the Marathas agreed to assist the Sayyid Brothers (Kingmakers of Delhi) in restoring the emperor’s authority against his rivals.

This settlement gave the Marathas a legal and financial base for expansion and symbolised the growing recognition of Maratha power in north India.
3. Establishment of the Hereditary PeshwashipUnder Balaji Vishwanath, the office of Peshwa evolved from that of a royal secretary to the chief executive authority.

• He reorganised administration, strengthened revenue collection, and brought efficiency to governance.
• His personal integrity and political skill won the trust of Shahu, who made the position of Peshwa hereditary in his family — a tradition that continued until the fall of the Maratha Empire in 1818.

4. Control over the Maratha NobilityBalaji Vishwanath reduced the autonomy of powerful military chiefs (Sardars) such as the Dabhades, Angres, and Bhonsles by integrating them into a centralised structure loyal to Shahu.

• He persuaded Kanhoji Angre, the powerful naval chief of the western coast, to acknowledge Shahu’s authority, thereby bringing the Maratha navy under royal control.
• His conciliatory approach avoided unnecessary internal conflict while strengthening central power.

5. Financial and Administrative ReformsAs an able financier, Balaji restored fiscal stability to the Maratha state.

• He introduced systematic collection of Chauth and Sardeshmukhi from Mughal territories.
• He reorganised the administrative machinery, improving efficiency and accountability.
• His policies revived trade and agriculture, providing economic stability after decades of war.

6. Strengthening of the Maratha ConfederacyBalaji Vishwanath laid the groundwork for what later became the Maratha Confederacy.

• He developed a system where regional Maratha chiefs such as the Gaekwads of Baroda, Holkars of Indore, Scindias of Gwalior, and Bhonsles of Nagpur contributed to a collective empire under Shahu’s nominal authority.
• This decentralised but coordinated structure enabled rapid Maratha expansion under his successors.

Relations with the British and Portuguese

Balaji Vishwanath also had to manage relations with the European powers operating along India’s western coast.

• The Portuguese controlled several coastal areas, including Goa and Daman. Balaji attempted to regulate trade and prevent their encroachment into Maratha territories.
• The British presence was limited to Bombay, but he recognised their growing influence and maintained a cautious approach, avoiding direct confrontation.

Character and Statesmanship

Balaji Vishwanath was not a warrior in the traditional sense like Shivaji or his generals, but he was a master strategist and diplomat. His leadership style was characterised by:

• Prudence and flexibility: He preferred negotiation and alliance over force.
• Financial acumen: His fiscal reforms restored confidence in the Maratha treasury.
• Administrative vision: He transformed the Peshwa’s office into the real seat of power.
• Loyalty to Shahu: His devotion to the Chhatrapati earned him trust and respect across the empire.

Death and Succession

Balaji Vishwanath died in April 1720 at Supa near Poona (Pune), after suffering from ill health. He was succeeded by his son Baji Rao I (1720–1740), who carried forward his legacy with military brilliance and expanded the Maratha Empire to its zenith.
His other son, Chimaji Appa, also became a distinguished general known for his campaigns against the Portuguese.

Legacy

Balaji Vishwanath’s contributions to the Maratha Empire were foundational and transformative:

• He restored political unity after years of civil war.
• His diplomacy secured legitimacy for Maratha authority from the Mughals.
• He established the Peshwa family of Poona as the centre of Maratha administration and power.
• His administrative and financial systems provided stability that enabled subsequent expansion under Baji Rao I.

Historians often refer to him as the “Second Founder of the Maratha State,” as his reforms laid the groundwork for the Maratha ascendancy in eighteenth-century India.

Historical Significance

The rise of Balaji Vishwanath marks a critical phase in the evolution of the Maratha polity:

• He shifted the Maratha Empire from a warrior state to an organised political structure.
• His settlement with the Mughals transformed the Marathas from regional rebels into legitimate rulers.
• His creation of a hereditary and efficient Peshwaship paved the way for a century of Maratha dominance in Indian politics.