IMPERIALISM V. FEDERALISM 91
The Federal plan was not only proposed by its advocates in the interests of economy and responsibility, but also in the interests of plenty. The Federalists denied that India offered few sources of revenue for the growing expenditure of the State. Though the Indian Finance ferry was water-logged, it was their view that there were many sources of taxation with the outpourings of which it could be set afloat. But they argued that these available sources were left untapped, as the Imperial Government, which could tap them, would not do so because of their restricted locale; and Provincial Government, which would like to tap them, because of their restricted locale could not do so under the existing constitutional law. But if the Provincial Governments were vested or rather re-vested with the powers of taxation as they would be under the Federal plan, such sources of taxation as were given up for being too regional-in character by the Imperial Government would be used by the Provincial Government to the great relief of Indian Finance as a whole.
Not only was Federalism advocated in the interests of economy and plenty, but also in the interests of equity. It was contended that the existing system resulted in an iniquitous treatment of the different provinces. If we take public works of provincial utility and the expenditure incurred upon them in the different provinces as the criterion, the criticism of the Federalists cannot be said to have been unfounded. On the other hand, the following figures go to substantiate a very large part of their arguments :—
O UTLAY ON P UBLIC W ORKS
Average for the years 1937-8 to 1845-6
| Province | Population in thousands | Area in sq. miles | Revenues in hundreds of Rs. | Expenditure on Public works in hundreds of Rs. |
|---|---|---|---|---|
| Bengal N.W. P. Madras | 40,000,000 23,200,000 22,000,000 | 1,65,443 71,985 1,45,000 | 10,239,500 5,699,200 5,069,500 | 1,79,812 1,41,450 30,300 |
Complied from Calcutta Review, 1851, Vol. XVI, p. 466.