The relationship between literature and politics is a reciprocal one. The core theme of literature makes a positive impact on individual and society. Literature was considered as a powerful tool to explore the moral, ethical and social values which brought notable changes in the socio – political sphere. In this context, Thirukkural is most important universally accepted literature as it reveals the ethical values of politics and administrative system found in the erstwhile Tamil society like elements of state, fortification, excellence of army, factors for good governance, qualities of a king, minister, avoidance of faults, etc. Thirukkural is a timeless Tamil Classic written approximately 2,000 years ago by the great thinker and philosopher - Saint Thiruvalluvar. Ethical and political principles of a very high standard are expressed in the Thirukkural in a lucid and precise manner which also applicable to the present day democratic governance. Out of the three, the second part ‘Porul’, (Wealth) is a treatise on political philosophy and administrative practices as well as on economy. It is directly addressed to the leader or the Ruler. As such this paper attempts to highlight the administrative thoughts of Thiruvalluvar in the context of good governance and welfare politics that existed in ancient Tamil society.