Due to the army re-organisation, how much increase in defence expenditure accounted for, of the total Central and Provincial government revenue in India?

Correct option is B

The army re-organisation in British India during the late 19th and early 20th centuries led to a significant increase in defence expenditure. This rise accounted for approximately 25% to 30% of the total revenue collected by the Central and Provincial governments combined. The increased military spending was primarily aimed at strengthening the army’s structure, upgrading equipment, and maintaining control over a vast and diverse colony, especially in the context of rising geopolitical tensions.

Information Booster:

The British colonial administration prioritized military expenditure to ensure control over the Indian subcontinent and safeguard its interests against internal revolts and external threats, such as Russian expansionism. The army re-organisation involved modernization efforts and increased recruitment, which necessitated a larger budget allocation. Defence expenditure thus became a significant burden on the colonial economy, impacting fiscal policies and revenue distribution.