Previous Year Question
With reference to the period of colonial rule in India, “Home Charges” formed an important part of drain of wealth from India. Which of the following funds constituted “Home Charges”?
Funds used to support the India Office in London.
Funds used to pay salaries and pensions of British personnel engaged in India.
Funds used for waging wars outside India by the British.
Select the correct answer using the codes given below:
Correct Answer: B
Detailed Solution
Statement 1 is correct. “Home Charges” broadly referred to expenditure incurred in Britain on the Indian account and charged against Indian revenues. The cost of maintaining the India Office and its associated establishment in London formed part of these charges. A 1902 parliamentary statement on “Home Charges on India” specifically lists the India Office, Store Department and Auditor's establishment among the components.
Statement 2 is correct. Home Charges included several sterling payments associated with British civil and military personnel, particularly pensions and furlough allowances. The same 1902 parliamentary record lists “Military Furlough and Civil and Military Pensions” as a major item. A 1906 official statement likewise includes payments relating to Civil Departments, Army effective charges, furlough allowances and civil and military pensions in expenditure incurred in England and charged against Indian Revenue.
Statement 3 is incorrect. The British did at various times charge India for imperial military operations and wars fought outside Indian territory. That was a genuine element of the economic burden imposed on India. But an important accounting distinction must be maintained:
An expenditure being charged to Indian revenues did not automatically make it a “Home Charge”.
Contemporary financial accounts of Home Charges list items such as debt and railway obligations, the India Office, civil departmental payments, Army-related expenditure in Britain, stores, furlough allowances and pensions. The cost of wars outside India was not, merely by virtue of being charged to India, a standard component called “Home Charges”.