Vol. 6 · pages 241–245
The Evolution of Provincial Finance in British India; The Problem of the Rupee; other economic writings
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226 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
hardly be possible to deny this characteristic to the Indian
constitution, for the provision of the constitutional law has
since then been that the additional (i.e. the Legislative)
members and the ordinary (i.e. the Executive) members shall
together form the Legislature for the making of the laws and
regulation for the peace, order and good government of British
India.1 But judged in the light of its de facto consequences the
Indian system falls lamentably below the de jure connotation
of the class of governmental systems to which it belonged. If
in other countries the record of Parliamentary government is
one of submission of the Executive to the Legislature, in India
it had been one of the Executive thwarting, often of flouting,
the legislature. In vain may one search the proceedings of the
Legislature to find the Executive ever paying deference to the
wishes of the people. 2 Reforms have been incessantly, asked
for by the legislature only to be denied with equal tenacity
by the Executive.
The reason why the Indian parliamentary system was
but an empty form is to be found in the fact that it was a
Parliamentary system without a Parliamentary Executive.
In other words, the Executive under the system was not
responsible to the legislature and was not removable by it.
The Indian Legislature could neither make nor unmake the
Indian Executive. The Indian Executive made peace or war as
it liked without being afraid of dismissal by the Legislature.
It taxed as it pleased and spent as it liked, without the
slightest compunction as to the wishes of the Legislature,
it undertook acts or refused to undertake them according
to its own sweet will, but had no fear of a vote of censure
from the legislature. The nearest approach to the Indian
1 Cf. the important note by that eminent lawyer Sir Bhashyam Iyengar on
the Reform proposals of Lord Minto in 1908.
2.The following table from N. C. Kelkar’s The Case for Indian Home Rule, p.
81, is illustrative of the fact:—
Legislative
Council
No. of
Resolutions
moved
No. of
Resolutions
withdrawn
No. of
Resolutions
rejected
No. of
Resolutions
accepted
Supreme … 3 2 1 0
Madras … 32 26 6 0
Bengal … 38 26 12 0
U. P. … 22 10 12 0
Bihar and Orissa … 5 5 0 0
C.P. … 4 2 2 0
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THE NECESSITY FOR A CHANGE
system of parliamentary Government is to be found in the
position of the Irish Parliament which existed from 1782 to
1800. The peculiarity of the case lay mainly in the fact that
while this Irish Parliament, commonly known as Grattan’s
Parliament, was during the period it lasted admittedly a
sovereign Legislature, the Irish Executive of the time was
as regards the Irish Parliament in no sense a Parliamentary
Executive. The Irish Executive, instead of being appointed and
dismissed by the Irish Legislature, was in reality appointed and
dismissed by the Crown on the advice of the English Ministry.
In the same manner the Indian Executive was appointed and
dismissed by the Crown on the advice of the Secretary of State
for India who is a member of the English Ministry and was
in no way responsible to the Indian Legislature.
It is true that the Executive in India was ultimately
responsible to the Secretary of State for India and through
him to the British Parliament. But it must not be forgotten,
said Mr. Fisher, 1 that
“the affairs of India are in the hands of the Government
of India.... Proposals may come from the Indian
Government to London and be vetoed by the Imperial
Government. The large lines of Indian policy may be
shaped by a Secretary of State in the India Office, and a
powerful Secretary of State may make his influence felt
strongly on the direction of Indian affairs if he encounters
no serious opposition from the Government of India. But
in reality the last word lies with the Indian official opinion
(i.e. the Executive in India), that a measure would not
be forced upon India against the united opposition of the
Indian bureaucracy.”
As a matter of fact neither was the Secretary, though
all-powerful in Indian affairs, inclined to restrain the
Executive in India from doing what the people regarded
as evil nor to constrain it to do what he thought to
be for the good of the people. 2 Hardly can it be said
that the British Parliament, wherein every member
1 Fisher, H. A. L., on Imperial Administration in his The Empire and the
Future, 1916, p. 58.
2 The only two cases in which the Secretary of State is known to have run
counter to the wishes of the Executive in India were those concerning the Punjab
Drainage and Canal Act and the Indian Tariff Act of 1875. The latter was obviously
detrimental to the interests of India.
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228 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
has been supposed to be a member for India, has made the acts of
the Indian Executive a matter of anxious scrutiny. 1 On the other
hand, its interference in Indian affairs has on some occasion been
positively harmful to the interests of the Indian people. 2 Indeed,
there can be no doubt that the interest of Parliament in Indian
affairs since the assumption of the Government of the country
by the Crown instead of increasing has considerably diminished
as compared with the interest it took when the affairs of the
country were in charge of the Company. 3 Nay, the influence of
the British Parliament over Indian affairs, it may be said, has
undergone a decided change for the worse, 4 inasmuch as all its
influence is exerted to strengthen the Executive in India against
popular clamour rather than restraining it from flying in the face
of public opinion.
It is therefore evident that the control of the Secretary of State
and of Parliament over the Executive in India was only a nominal
control, and the Indian Executive was in reality an uncontrolled
body of bureaucrats in the exclusive charge of Indian affairs. How
was this trust discharged by this irresponsible Executive ?
The answer to this question may be summed up in the
statement that the Indian Executive has sacrificed progress to
order. Whether we examine its actions in the field of legislation
or finance, the truth of this statement becomes painfully evident.
1 The salary of the Secretary of State for India being paid out of the revenues of India,
Parliament, had no occasion, as it had in the case of the Colonial Secretary, to annually
review his actions in the full activity of the parliamentary Session. At the end, generally
after the Appropriation Bill had been read a second time, the Indian Budget used to be
submitted to Parliament which, after a somewhat desultory discussion, used to pass a
Resolution proclaiming in solemn terms that the Indian Accounts show certain totals of
income and expenditure ! Many attempts were made to improve the control of Parliament
on Indian affairs. But Parliament never cared to increase its control. In 1873 Mr. R. N.
Fowler moved “that in the opinion of this House it is desirable that the Statement of the
financial affairs of India should be made at a period of the Sessions when it can be fully
discussed.” Again in 1883 the same motion was brought forward by Mr. Fowler. Both of these
attempts to furnish the House with a better opportunity to review Indian affairs fell to the
ground. In 1899 the same Resolution was moved by Mr. Cladwell, M.P., with the addition
that the Salary of the Secretary of State for India be placed on the British Estimates. It
was opposed by Mr. Fowler, who was then the Secretary of State for India, and was in
consequence lost. By the provision of the Government of India Act of 1919 the House has
a better opportunity to criticize Indian affairs owing to the salary of the Secretary of State
having been placed on the British Estimates.
2 Cf. the Resolutions of the House of Commons in 1877 and 1879 condemning the Indian
Tariff policy in the interest of Lancashire.
3 In support of this may be cited the fact that Parliament never granted a lease of power
without making harassing inquiries into the affairs of the East India Company.
4 Compare the Parliament which subjected the Indian Executive to the Judicature
with the Parliament that has freed that Executive from Judicial and Legislative control.
Compare the Parliament which laid stringent regulations on the Europeans in India with
the Parliament which not only allowed them free ingress but kept them above the control
of the Magistracy. Compare the Parliament which impeached Hastings with the Parliament
which supported General Dyer.
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THE NECESSITY FOR A CHANGE
There are very few countries in the world where there may
be said to prevail so many social evils as has been the case
in India. Law is a means by which society from time to time
repairs its ills in order to effect its conservation. But with very
few exceptions 1 the rule of personal law of a most pernicious
character has been allowed to govern the social relations of
the citizens, notwithstanding the fact that enlightened public
opinion has long since raised its voice of protest against its
perpetuation.2 So religious has been the regard of the Executive
for the preservation of the personal law, notwithstanding the
fact that it has disabled millions of its subjects from enjoying
the most elementary rights of citizenship, that it has been
careful not to allow in cases of conflict the rational provisions
of the civil law to override or chasten the irrational rulings
of that archaic code. 3 Judged by the modern standard of
legislation the Executive must be pronounced to be extremely
conservative. In the matter of securing economic rights its
response was of a very halting character, and the legislation
it has been persuaded to undertake for giving security or
fixity of tenure to the agricultural 4 or ease and comfort to the
industrial5 population sank in comparison to what it refused to
undertake for liberating the rest from a species of industrial
slavery notwithstanding incessant demands for its abolition. 6
Its financial system was similarly characterized by the desire
to preserve peace and order by taxing the masses and exempting
the classes. It has been urged that the revenue system be so
altered as to give relief to the poorer classes. Indirect taxes are
justified as a method of making the poorer classes pay their
1 Bengal Regulation of 1829 prohibiting Sati; Act V of 1843 (prohibiting slavery); XXI
of 1850 (re enacting Sec. of Reg. VII of 1832) prohibiting forfeiture of rights or property
as a result of loss of caste or religion ; XV of 1856 authorizing the remarriage of Hindu
widows ; XXI of 1866 enabling native Converts to Christianity to obtain divorce ; XXVII of
1871 restricting unnatural practices ; III of 1872 providing a form of marriage for all persons
who are neither Christians, Jews, Hindus, Mahomedans, Jains, nor Sikhs.
2. It was first accepted by Warren Hastings in 1772 and was embodied in the East
India Company’s Act of 1780 (21 Geo. III, c. 70, ss. 17 and 18); the provisions have been
incorporated in later Statutes.
3 Cf. the provisions in favour of the personal law in the Indian Succession Act X of 1865;
the Transfer of Property Act IV of 1882, and the Indian Trust Act II of 1882.
4 Cf. The Tenancy Acts of 1859, 1868, 1881 and 1885 in Bengal; Oudh Rent Act of 1868
in U.P.; the Deccan Agriculturists Relief Act of 1879 in Bombay, and the Central Provinces
Tenancy Act of 1883.
5 The Factory Acts did not begin in India till 1881. The Act of 1881 was amended in
1891 and replaced by another in 1911 which lays down the conditions governing factory
labour in India.
6 Students of Indian economic problems will perceive that the reference is to the scandalous
system of indentured labour.
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230 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
share of the burden of the State without their being sensible
of the fact. But there is a limiting principle which forbids the
imposition of certain kinds of indirect taxes. It may be said
to be agreed by students of public finance that indirect taxes
be such that the poor on whom they impinge rather heavily
relatively speaking, must be able to adjust the burden of such
taxes to their means. When such indirect taxes fall on luxuries
it is possible for them to apportion for themselves the burden
they need must bear by regulating their purchases. But in
those cases where they fall on necessaries of life this elasticity
is not possible. The pernicious character of the salt tax in
India was urged as a sufficient ground for its elimination from
the revenue system of India. But not only did the Executive
refuse to accept the demand, it actually increased the salt
tax whenever a deficit has occurred instead of tapping some
other source of revenue, which it could have done with equal
ease and greater justice. In 1886, to cite one example, it was
admitted1 that
“ There can, after all is said and done, be no manner
of doubt, but that one great fact remains established,
one great blot not only unremoved but aggravated by
the course of events in recent years ..… It is that .....
the classes in (India) which derive the greatest security
and benefit from the British Government are those who
contribute the least towards it.”
But in the Budget of 1887-8 the Executive eschewed its
own conviction and inceased the salt duty to make up for the
deficit caused not by any extraordinary measure of internal
improvement but by an enormous act of external aggression,
namely the conquest of Burma, as though the income tax of
1886 which left untouched the incomes of the Bengal zamindars,
the Assam Tea planters and the Talukdars of Oudh, in making
the richer classes pay, made them pay, at the very moderate
rates it levied, all they could be made to pay.
But the salt tax is not the only instance of inequity under which
the masses paid for the classes. The land revenue as it has been
levied in India may be cited as another example of inequity in the
Indian Tax System. The sources of inequity are various. There is
first of all the glaring fact that in some cases the amount of the tax
1 Cf. the speech by Sir A. Colvin on the License Tax Amendment Bill in the
Supreme Legislative Council on January 4, 1886.