§ 41. Sir J. D. REESasked what were the chief difficulties which arose and what was the chief cause of the controversies between the provincial and central governments in India in respect of the framing of provincial settlements?
§ Mr. MONTAGUIn framing provincial settlements the object in view is to endow the provinces as liberally as efficiency without extravagance demands. This end is accomplished by research and possibly by consultation and correspondence, not of course, without difficulty, but never, I think, leading to controversy.
§ 59. Sir J. D. REESasked whether there have been any and, if so, what recent developments in the system of Indian provincial settlements; and what correspondence has passed between the Government of India and the India Office on this subject?
§ Mr. MONTAGUNew settlements with the several provinces were introduced in 1911, and their general features are described in the financial statement of the Government of India for 1911–12. The terms were previously the subject of correspondence between the Government of India and the Secretary of State and were approved by him.
§ 60. Sir J. D. REESasked what correspondence passed between the Government of India and the Government at Bombay on the last occasion of making a provincial financial settlement; what reasons led the Government of India to abandon the correspondence; and what were the terms of the settlement finally made?
§ Mr. MONTAGUThe correspondence to which the hon. Member refers arose out of proposals regarding provincial finance made by the Decentralisation Commission, which were referred by the Government of India to local governments for opinion. The views of the Bombay Government and 374 of other Governments were considered by the Government of India, who placed their conclusions before the Secretary of State. His decisions as to the terms of the new provincial settlements were explained and given effect to in the financial statement for 1911–12.