THE COMPROMISE 109
the rupee. The same rate will govern the proportion of the charges for collection transferred..........
“The next item of revenue which I assume at onefourth of the Income Tax and License Tax, which I shall suppose to be raised. [1]
“It is next proposed to transfer the whole of the receipts under the following heads : (1) Law and Justice,
(2) Police, (3) Education, (4) Miscellaneous, except items of a financial nature, and also (5) all income under Police Works excepting that derived from Irrigation. The items of expenditure under Public Works proposed to be transferred are (1) Roads, (2) Repairs of Civil Buildings,
(3) Miscellaneous works both new and repairs, and
(4) Tools and Plant.”
The scheme thus enlarged was discussed at length from various points of view. But though it won the approval of cautious critics [2] the scheme was too large for the Imperialists. And as the two greatest of them, Lord Lawrence, the Viceroy of India, and Lord Napier of Merchistoun, Governor of Madras, disapproved of it, it failed to materialize in consequence of their opposition.
But unfortunately for the Imperialists, throughout this decade during which they were stubbornly objecting to any surgical operation on their patient—the Imperial system of Finance—it did not show any sign of convalescence. On the other hand, the delay in the operation aggravated its ills. Notwithstanding the constant enhancement in taxation and the reduction in expenditure, the three Chancellors of the Indian Exchequer sent from England could point to only three years of surplus during the decade between 1860 to
- On the other hand, to the embarrassments due to constant deficits was added the bewildering breakdown of the budget system created to bring about order and economy in
1 In thus calculating the share Mr. Massey wrote, “The Income Tax I have taken at 2 per cent, and I have conceived that it will cease below incomes of
2,000 rupees. The Licence Tax I have supposed to be a trade tax beginning at the existing limit and going upwards to meet the Income Tax.”
2 Sir Stafford Northcote declared—“We must take care that the solidarity of Indian Finance is not shaken, and we must provide safeguards against reckless expenditure. We have a system which has raised the credit of India to the highest pitch, and therefore I should be the last to disturb it, and would be slow and cautious in introducing any change. Nevertheless, I repeat that in the principles of Mr. Massey’s suggestions I concur.”— Hansard’s Parliamentary Debates, Vol.
191, April 23, 1868.