The British conquered Bengal first and then they reordered its rural society and established a regime of land rights and revenue system. The first revenue collection system was introduced in Bengal and Bihar. It was known as the Permanent settlement by Lord Cornwallis.
As per this system, the zamindars and taluqdars were recognised as estate owners and were given revenue collection responsibility. They had to collect land revenue from farmers, pass on the share fixed by British to them and keep the rest. Since the revenue rate were permanent they were kept high. It was argued that as they couldn’t be increased the subsequent loss to British had to be overcome initially. The British felt this system would benefit British, Zamindars who would invest in the land to improve its productivity as it would increase their share and farmers too. But the system was a big failure.
However the system failed and large number of zamindars defaulted. Reasons: The system limited their power of collecting revenue by force, they agriculture prices were stagnating during that period.
The jotedars were rich farmers who cultivated land directly became more powerful under this system. They resisted payment of rent to zamindars as they were happy to see them in trouble. The jotedars also bought most the land auctioned of a defaulting zamindar. Jotedars soon possessed thousand acres of land and became powerful in the rural society. The zamindars couldn’t get relief from the judicial process too as it was overburdened. So their influence decreased.
However zamindars devised newer ways to cheat the system. They collected rent but never past on the share to the British. Thus when the British auctioned the property the zzamindars would use his agents to purchase it back but not pay the purchase money. The property would then be reauctioned. This process would continue till finally the same property would be returned to the zamindar.
The rural society viewed zamindar as the lord and themselves as his praja and hence rejected authority of new zamindars if they came. Thus zamindars remained in power for a long time but collapsed finally in 1930 due to the Great Depression and Jotedars became powerful.
Pahadias were forest dwellers of Rajmahal hills. They were hunters, gatherers, shifting cultivators. Their social structure consisted of tribal chiefs and tribes which would live as a community and go to war with other tribes. Settled cultivators were outsiders and would be raided if scarcity was faced. Hence the settled cultivators or traders would pay tributes to the tribal chiefs to buy peace or to use travel routes controlled by them.
The British viewed shifting cultivators are dangerous and wanted them to settle as it would ensure control and a source of revenue. They offered stipend to tribal chiefs to control their tribes and settle down but if the tribal chiefs refused this they would follow a policy of extermination. The Pahadias were therefore forced to move to inner parts of the jungle to escape this persecution.
Soon another threat appeared to them in the Rajmahal jungles: Settled cultivators called Santhals.
Santhals too were moving cultivators but were provided the foothills of Rajmahal for settling down. They occupied and cleared the forest for settled cultivation. The Pahadias were forced now to move to deeper areas which were drier and infertile. Their shifting cultivation also failed as newer areas couldn’t be accessed as these were occupied by Santhals. Meanwhile Santhals prospered and brought high revenues to the British. Soon they realised that the land revenues were high and the trader – moneylenders were making them impoverished by usurping their land. Finally in 1850’s they rebelled against the colonial state and its agents.
Due to the defects of the Permanent Settlement System of Bengal the british felt the need for a better system of revenue and so Thomas Munro proposed the Ryotwari Settlement which was operated in Madras, Bombay and Assam. Under this land was reassessed every 30 years and revenue was revised.
However the revenue demand was very high and rigid. The tax officials collected with utmost severity and forced the peasants to escape from his village. The peasants were forced to borrow from moneylenders at high rates to pay the revenue. This made them indebted and they lost their possessions.
Things turned better during the American Civil War as cotton supply to British was cutoff and India became a sole source. Thus prices of cotton boomed. The moneylender lent long term loans to ryots for cotton production. But as the Civil war ended the loans had to be repaid but the prices of cotton had fallen. In such cases the peasant had no choice but to revolt. His anger was focused on the moneylenders and traders who cheated him and usurped his land. He therefore rioted till his immediate problems were solved.
The British supported the rioting peasants and appointed a relief commission and took steps to alleviate their plight. The reasons for British sympathy were that farmers revolted against moneylenders not them and these revolts ad occurred in the aftermath of the 1857 revolt.
Gandhiji was invited in 1915 to talk at the inauguration of Benaras Hindu University. On that event many dignitaries, guests and prominent leaders like Jinnah, Beasant were present. Gandhiji was a relatively unknown figure amongst them but when it was his turn to speak he charged the audience. He spoke about how the Indian National Congress was a league of influential people and the National Movement was a movement of elite without participation of poor. He said that independence can be achieved only if the poor were brought into this movement. He got a chance to put his principles into practice when a member of the audience asked him for assistance in Champaran village.
Limits to the Civil Disobedience
Civil disobedience movement was called in 1930 after the British refused to acept the congress demands. Gandhiji launched the movement with the Salt Satyagraha. Till the Gandhi Irwin pact was signed the frst phase of Civil Disobedience continued. This was the most organized mass movement of Freedom struggle but it wasn’t embraced by all social groups.
Mayo’s Resolution of 1870
Financial decentralisation was a legislative devolution inaugurated by the Indian Councils Act of 1861. Apart from the annual grant from imperial Government, the provincial governments were authorised to resort to local taxation to balance their budgets.
This was done in context of transfer of certain departments of administration, such as medical services, education and roads, to the control of provincial governments. This was the beginning of local finance.
The various provincial governments such as in Bengal, Madras, NorthWestern Province, Punjab, passed municipal acts to implement the policy outlined.
Royal Commission on Decentralisation (1908)
Pointing out the lack of financial resources as the great stumbling block in the effective functioning of local bodies, the commission made the following recommendations.
It emphasised that village panchayats should be entrusted with more powers like judicial jurisdiction in petty cases, incurring expenditure on minor village works, village schools, small fuel and fodder reserves, etc. The panchayats should be given adequate sources of income.
It emphasised the importance of sub-district boards to be established in every taluka or tehsil, with separate spheres of duties and separate sources of revenue for sub-district boards and the district boards.
It urged the withdrawal of existing restrictions on their powers of taxation, and also, the stoppage of regular grants-in-aid from provincial governments except for undertaking large projects.
The municipalities might undertake the responsibility for primary education and, if willing, for middle vernacular schools, otherwise the Government should relieve them of any charges in regard to secondary education, hospitals, relief, police, veterinary works, etc.