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The then Secretary of State for Indian Mr. E.S. Montagu and the
Governor General Lord Chelmsford Formulated Proposals for the Government of
India Act, 1919.
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Responsible Government in the Provinces was to
be introduced, without impairing, the responsibility of the Governor (through
the Governor General), for the administration of the Province, by resorting to
device known as ‘Dyarchy’ or dual government.
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The subjects of administration were to be
divided into two categories Central and Provincial.
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Central
Subjects were those which were exclusively kept under the control of the
Central Government.
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The provincial
subjects were sub-divided into ’transferred’ ‘reserved’ subjects.
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The ‘
transferred subjects’ were to be administered by the Governor with the aid
or ministers responsible to the Legislative Council in which the proportion of
elected members was raised to 70 percent.
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The ‘reserved
subjects’ were to be administered by the Governor and his executive Council
with no responsibility to the Legislative.
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The previous Central control over the provinces
in administrative, legislative and financial matters was relaxed. Sources of
revenue were divided into two categories so that the provinces could run the
administration with the revenue raised by the provinces themselves.
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The provincial budget was separated from the
central budget.
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The
provincial legislature was empowered to present its own budget and levy its own
taxes relating to the provincial sources of revenue.
