Who was credited for taking the first important step towards financial decentralization in India?

Correct option is D

The correct answer is (d) Lord Mayo.

Lord Mayo is credited with initiating the first significant step towards financial decentralization in India during his tenure as the Viceroy of India (1869–1872). His reforms laid the groundwork for a systematic division of financial powers between the central and provincial governments, creating a more decentralized governance model.

Key Contributions of Lord Mayo:

Financial Decentralization (1870):

• Allocation of Revenues and Expenditures:

  • Provincial governments were assigned specific revenues (such as income from forests and local taxes) and responsibilities for certain expenditures.
  • Provincial governments were tasked with managing expenditures related to police, jails, education, public health, and public works.
  • The system allowed provincial governments to use locally raised revenues for these assigned responsibilities.

• Objective:

  • Reduce the administrative burden on the central government.
  • Empower provincial governments to manage their own finances and become more accountable for governance.
  • Improve efficiency in resource utilization and delivery of public services.

Legacy:

• First Step in Devolution of Powers:
  • Lord Mayo’s decentralization initiative marked the beginning of financial autonomy for provincial governments in India.
  • This framework was further developed by successive Viceroys like Lord Ripon and Lord Curzon.
  • It set the precedent for modern federal financial structures in India.

Additional Information:

• Lord Irwin (1926–1931):

  • Known for the Gandhi-Irwin Pact (1931) during the Civil Disobedience Movement.
  • Not associated with financial decentralization.

• William Bentinck (1828–1835):

  • Famous for social reforms, including the abolition of sati and suppression of thuggee.
  • Played a significant role in introducing Western education but had no connection to financial decentralization.

• Lord Cornwallis (1786–1793):

  • Introduced the Permanent Settlement of Bengal (1793) as part of revenue reforms.
  • Known for judicial and administrative reforms, not for decentralization of financial powers.

Lord Mayo’s financial decentralization initiative was pivotal in shaping the governance structure of British India, setting the stage for greater provincial autonomy and more efficient administration.