The Government of India Act, 1935 and After

The provincial autonomy ushered in by the Government of India Act, 1935 gave further impetus to the development of local self-governing institutions in India. Portfolio finance being under the control of popular ministries, now the funds could be made available for development of local bodies. Further, the demarcation of taxation between provincial and local finance which prevailed since the reforms of 1919 was scrapped. New Acts were passed in the provinces giving more authority to local bodies.

However, financial resources and power of taxation of local institutions remained more or less at the same level as in the days of Ripon. Rather, after 1935, certain new restrictions were placed on powers of local bodies to levy or enhance terminal taxes on trades, callings and professions and municipal property. The provincial governments seemed to have ignored the liberal policy of granting wide powers of taxation to local institutions as recommended by the Decentralisation Commission (1908).

[The Constitution of free India directs the state

governments to organise village panchayats as effective organs of local self-government (Article 40). The Seventy- third and Seventy-fourth Amendments are aimed at plugging the loopholes in the structure of local self-governing institutions in rural and urban areas.]

Chapter 27

Survey of British Policies in India

Administrative Policies

Contrary to their pre-1857 intentions of trying to modernise India on progressive lines, now the administration adopted blatantly reactionary policies on the pretext that Indians were not fit for self-governance and needed British presence in their lives.