THE NATURE OF THE CHANGE 273
contribution, and that the process of transition from the initial to the standard ratio should be continuous beginning in the second year of contribution, and proceeding in six equal annual steps.”
The following table shows the initial, intermediate, and ultimate ratios of contributions for the seven years in accordance with the recommendations of the Committee :—
P ER CENT . C ONTRIBUTIONS TO D EFICIT IN S EVEN C ONSECUTIVE Y EARS BEGINNING WITH THE F LRST Y EAR OF C ONTRIBUTION (rounded off to even halves)
| 1st Province Year | 2nd Year | 3rd Year | 4th Year | 5th Year | 6th 7th Year Year |
|---|---|---|---|---|---|
| Madras 35½ Bombay 5½ Bengal 6½ United 24½ Provinces Punjab 18 Burma 6½ Bihar and nil Orissa Central 2 Provinces Assam 1½ Total 100% | 32½ 7 8½ 23½ 16½ 6½ 1½ 2½ 1½ | 29½ 8 10½ 22½ 15 6½ 3 3 2 | 26½ 9½ 12½ 21 13½ 6½ 5 3½ 2 | 23 10½ 15 20 12 6½ 7 4 2 | 20 17 12 13 17 19 19 18 10½ 9 6½ 6½ 8½ 10 4½ 5 2 2½ |
| 100% | 100% | 100% | 100% | 100% 100% |
These recommendations were accepted by the Government of India and the Secretary of State. But when the rules in which they were embodied came before the Joint Select Committee of Parliament appointed to revise the draft rules made under the Government of India Act, for consideration, the Committee made some important alterations in the allocation of revenues and contributions from the Provinces. In its Report [1] the Joint Committee recognized
“ the intricacy of the problem with which the Financial Relations Committee had to deal, and the difficulty, amounting
1 Second Report of the Joint Committee appointed to revise the draft rules made under the Government of India Act, pp. 172 of 1920, pp. 2-3.