THE EVOLUTION OF PROVINCIAL FINANCE IN BRITISH INDIA - Page 179

164 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES

The evil effect of large resumptions and fixed assignments will be clearly seen in the condition of Provincial Finance as indicated by the annual surpluses and deficits over the period of the settlement:—

Province Annual Surpluses or Deficits Col3 Col4 Col5 Col6
1892-3 1893-4 1894-5 18S5-6 1896-7
C.P. ... Burma ... Assam ... N.W.P. & ... Oudh Bengal ... Punjab ... Madras ... Bombay ... Rs. —21,798 66,642 9,336 —16,752 —9,826 —106,050 —159,081 —23,883 Rs. —60,772 —90,653 28,532 —25,155 36,887 —22,699 33,636 19,443 Rs. —105,108 —272,319 —27,422 —165,987 169,796 —24,811 92,328 —102,472 Rs. 19,653 226,505 30,507 —139,798 149,808 —7,156 44,118 100,690 Rs. —37,408* 780 —25,421 —164,740 —186,558 —64,073 —200,579 —221,119

Complied from the Annual Finance and Revenue Accounts of the Government of India.

It must, however, be admitted that the financial arrangements of the Provinces during this period were considerably disturbed by the outbreak of plague and famine towards the close of the settlements. The expenditure which the Provinces were obliged to incur to meet these two calamities depleted the resources of all and brought the Central Provinces and the North-West Provinces to the verge of bankruptcy, from which they were rescued by the following contributions made by the Government of India in aid of their balances in the year 1896-7 :—

To Central Provinces ... Rs. 526 lakhs. To N.W.P. and Oudh ... Rs. 1,609 lakhs.

Revision of 1896-97

This depression in Provincial Finance was alleviated to some extent at least in the revised settlements of 1896-7 by allowing a higher standard of expenditure and of revenue to the Provinces than was granted to them in 1892. The following table presents the old and the new standard of expenditure with the percentage difference between them :—

Provinces Standard Net Expenditure Col3 Increase per cent.
1892 1897
Central provinces ... Lower Burma ... Assam ... Bengal ... N.W.P. ... Punjab ... Madras ... Bombay ... Total ... Rs. 653,300 1,064,600 467,600 2,816,700 2,215,400 1,384,600 2,054,800 2,049,500 Rs. 710,700 1,206,100 564,900 3,125,500 2,428,700 1,537,300 2,238,600 2,544,100 8.8 13.3 20.8 10.9 9.6 11.0 8.9 5.6
13,066,500 14,355,900 9.9