Financial decentralisation in Punjab 1870 1961

Abstract

Finance is the backbone of every nation. In colonial India, the motives of the Central government in supervising provincial administration were chiefly financial. Since finance entered into every field of administration the central control began to be gradually exerted over almost every function of the provincial governments. Though, some decentralisation of control was witnessed over details, it was accompanied by a consolidation of control over essentials. However, in respect of education, police, forests and medical aid, the provincial governments were given substantial freedom. This freedom was first witnessed in 1870 under Viceroy Mayoand#8223;s government, which has the credit of the first attempt to make the provincial governments including Punjab responsible for managing their own local finances. It will not be incorrect to newlinesay that the history of financial decentralisation in India had its genesis during the viceroyalty of Lord Mayo. During this time each local government including Punjab was given a fixed grant for the upkeep of definite service, subject to certain conditions. Under this arrangement, the local governments were also provided for additional expenditure by the exercise of economy and if necessary by raising local taxes. newline newline