Q. With reference to financial decentralisation in British India, consider the following statements:
1.The financial decentralisation introduced from 1870 onwards was aimed at increasing provincial autonomy.
2.Under Lord Mayo, provincial governments were given fixed grants for certain services like police, education, and roads.
Which of the above statements is/are correct?
Answer: B
Notes:
Explanation:
- The reforms were meant to increase revenue efficiency, not to promote real autonomy.
- In 1870, Lord Mayo initiated the first step in financial decentralisation by granting provinces fixed sums for specific services.
Source: Spectrum’s A Brief History of Modern India
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