Which of the following Viceroys of British India took the first step to separate provincial finance from central finance and introduced financial decentralisation in India in 1870?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Lord Mayo.
- Lord Mayo, Viceroy of British India, took the first steps to separate provincial finances from central finances and introduced financial decentralisation in India in 1870.
- Lord Mayo, who served as the fourth Viceroy of India from 1869 to 1872.
- Key features of the 1870 financial decentralization reforms included
- Devolution of departmental control: Provinces assumed responsibility for jails, police, education, medical services, and roads.
- Fixed annual grants: Each province received a set yearly grant to administer these transferred functions.
- Local revenue powers: Provinces could levy local taxes to cover any shortfall in their grants or to fund development projects.