In 1882, Lord Ripon continued the policy of financial decentralization inaugurated under Lord Mayo. The following financial heads was not part of it :

The correct answer is - Trade Heads

Key Points

• Lord Ripon's Policy of Financial Decentralization
  • Lord Ripon implemented financial decentralization to enhance efficiency in governance during British rule in India.
  • This policy was a continuation of the financial reforms initiated by Lord Mayo, aimed at dividing financial responsibilities between the Central Government and Provincial Governments.
  • The financial heads introduced under this policy were:
    • Imperial Heads - Exclusively managed by the Central Government.
    • Provincial Heads - Revenue sources assigned to Provincial Governments for local administration.
    • Divided Heads - Shared financial responsibilities between Imperial and Provincial Governments.
• Why Trade Heads Were Not Part of the Policy?
  • The policy primarily focused on administrative and governance-related financial divisions, excluding trade-related revenues.
  • Trade Heads, dealing with trade and commerce, were not decentralized and remained under Imperial control.
  • This exclusion ensured that the British Government retained control over major economic activities and revenues from trade.

Additional Information

• Lord Ripon's Contribution to Indian Administration
  • Known as the Liberator of the Press, Lord Ripon abolished the restrictive Vernacular Press Act in 1882.
  • Introduced the Local Self-Government Act, empowering municipalities and local bodies.
  • Focused on improving education and supported the Hunter Commission for educational reforms.
• Financial Decentralization Under Lord Mayo
  • Lord Mayo initiated the concept of financial decentralization in India, laying the foundation for dividing fiscal responsibilities.
  • His reforms aimed at improving governance by assigning specific revenue sources to Provincial Governments.
  • Set the stage for Ripon's continuation and expansion of this policy.
• Impact of Financial Decentralization
  • Enhanced administrative efficiency by reducing the burden on the Central Government.
  • Allowed Provincial Governments to manage local needs more effectively.
  • Marked a significant shift in governance, setting a precedent for future financial reforms during British rule.