DOI Seite / Zitierlink:
https://doi.org/10.11588/diglit.68026#0134
128
MINUTES OF
EVIDENCE :
(3) A third Local Government Wanted a loan of
50 lakhs for another Port Trust, to be spent
in buying land, laying railway sidings and
building sheds and offices. The term pro-
posed was again 60 years, although the
undertaking was to be immediately re-
munerative, and the life of many of the
works was clearly far less than 60 years.
Here again the Government of India, in the
interests of posterity, had to cut down the
term to 30 years.
The fact is that, in nearly all public corporations in
India, there is an influential element who are strongly
biassed in favour of the reduction of the present rates
of taxation, whatever the effect on the future may be.
This view, plausibly disguised, is persistently forced
upon the Local Government, who are naturally anxious
to support local interests ; and the result frequently
is that the Government of India are the only authority
in the position to form a detached and impartial judg-
ment. I think that the existing rules might suitably
be relaxed to the extent of letting Local Governments
sanction the raising of loans in the open market for
amounts not exceeding five lakhs and for terms not
exceeding 30 years ; but I would not go further.
44868*. Generally speaking, could provincial Govern-
ments be given wider powers (a) in respect of the
creation of appointments and the raising of salaries
the cost of which falls wholly or partially upon them ;
(6) in respect to appointments the cost of which falls
wholly upon imperial revenues ? Could the restric-
tions upon provincial Governments contained in
Article 283 of the Civil Account Code be otherwise
lightened ?—f In respect of the creation of appoint-
ments and the raising of salaries, the cost of which
is wholly or partially provincial, the powers of a Local
Government are as follows :—
(a) It may create a permanent appointment with
a pay of. Rs. 250 per mensem.
(5) It may raise the pay and allowances of an
existing appointment up to Rs. 250 per
mensem.
(c) It may sanction a temporary appointment or
deputation for six months, if the salary is
not at a higher rate than Rs. 50,000 a year.
(d) It may sanction a temporary appointment or
deputation for a longer period, if the salary
does not exceed Rs. 250 per mensem.
(e) It may sanction a revision of establishment
which involves additional expenditure of
Rs. 25,000 a year.
The limits of these powers are, in the main, the
restrictions which were imposed on the Government
of India before August 1907, when the Secretary of
State .agreed to relax them. The powers of the
Government of India, as now defined, are expressed
J by substituting for the words italicized in clauses
(a) to (e) above the following words :—
(a) Rs. 500 per mensem.
(6) Rs. 750 per mensem.
(c) two years.
(d) Rs. 500 per mensem.
(e) Rs. 50,000 a year.
The propriety of extending those enhanced powers
to Local Governments, with whom provincial settle-
ments have been made, was considered when the
Secretary of State’s orders arrived : but it was decided
to leave the matter to be dealt with by the Royal
Commission, as it was recognized that any such exten-
sion would be a momentous piece of decentralization.
It is now suggested that the powers in clauses
(a) to (e), as enlarged in the manner described, may
be conferred on all Local Governments with provincial
settlements. This measure of devolution would save
a large amount of correspondence, and would give
■fThe reply to this question embodies suggestions
which were made to the Finance Department by
Mr. Meyer before the Royal Commission assembled,
and which the Department is prepared to accept.
i This statement requires two minor corrections, with
which I have not burdened the text. In the first place,
the Government of India may raise an officer’s salary to
Rs. 750 ; this is somewhat different from his pay and
allowances. In the. second place, the powers in clause
(a) cannot be exercised at all, and those in clause Q>') can
only be partially exercised, in respect of gazetted appoint-
ments Ordinarily recruited from England.
Local Governments a much freer hand than at present
in dealing with the establishments which are a charge
upon their revenues.
In respect of the creation of appointments and the
raising of salaries, the cost of which is wholly imperial,
the powers of Local Governments and minor adminis-
trations are defined in Article 278 of the Civil Account
Code. It is now suggested that the following extended
powers may be given in such cases, subject only to
the condition that sufficient budget provision exists :—
(a) Local Governments (i.e., those having pro-
vincial settlements) may revise establishments
when any additional expense involved is met
either by an equivalent reduction in the
same department or in some other department
charged to the same major head, provided
that the revision does not entail the creation
of a new appointment on pay of more than
Rs. 500 per mensem, or the raising of the
pay and allowances of any existing appoint-
ment to more than Rs. 500 per mensem.
(Z>) Minor administrations (i.e., those mentioned
in note'(iv) under’ Article 278, Civil Account
Code) may exercise the same powers, but
with Rs. 100 substituted for Rs. 500.
(c) Local Governments and minor administrations
may deal with non-gazetted establishments as
at present (Article 278 (a) (2), Civil Account
Code), but with power io create new appoint-
ments, or to raise the pay and allowances of
existing appointments, up to Rs. 100 per
mensem in each case.
(<Z) They may sanction temporary appointments
and deputations, subject to budget provision,
if the salary plus deputation allowance does
not exceed Rs. 100 and the duration of the
appointment or deputation does not exceed
12 months.
It is also suggested that the quarterly statements
prescribed in Article 278 (b) need not be submitted.
In respect to the further restrictions embodied in
the rules cited in Article 283, Civil Account Code,
certain relaxations may now be recommended in con-
nection with services of which the cost is wholly or
partly provincial. They are mentioned seriatim, with
reference to the clauses of paragraph 4 of the Resolu-
tion quoted in the article.
Clause (3).—This may be modified as suggested
above.
Clauses (4) and (5).—These restrictions may be
removed.
Clause (6).—In lieu of this, it may be laid down
that a Local Government before altering the
rates of duty on spirits and drugs in a district
which borders on another province, should
obtain the consent of the neighbouring pro-
vincial Government, referring the matter to
the Government of India only in the event
of the other Local Government disagreeing.
Clause (8).—The first sentence of this clause may
be cancelled.
Clause (10).—This is obsolete and may be with-
drawn.
44869*. Have you any other suggestions to make in
respect of the rules which now govern salaries, deputa-
tion and other allowances, and rewards or honoraria ?
—f In regard to salaries, the only suggestion I have to
make which is not already covered by the preceding
answer is a very minor one. Under Article 279A of
the Civil Account Code, the disallowance of an Audit
Officer in respect of pay and allowances drawn by an
officer under its control may be remitted by a Local
Government, on certain conditions, in so far as the
payments under objection were made more, than six
months before the date of the audit challenge. If,
however, the erroneous payments were made within
six months of the date of challenge, they cannot be
remitted without the orders of the Government of
India. In cases of this latter type, the Government of
India almost invariably accept the recommendation
of the Local Government ; and I think the remission
of disallowances might be left to the discretion of
t Paragraphs 2, 3, 4 and 5 of the reply to this question
embody suggestions which were made to the Finance
Department by Mr. Meyer before the Royal Commission
assembled, and which the department is prepared to
accept.
Mr. J. S.
Meston.
G Apr., 1908,
MINUTES OF
EVIDENCE :
(3) A third Local Government Wanted a loan of
50 lakhs for another Port Trust, to be spent
in buying land, laying railway sidings and
building sheds and offices. The term pro-
posed was again 60 years, although the
undertaking was to be immediately re-
munerative, and the life of many of the
works was clearly far less than 60 years.
Here again the Government of India, in the
interests of posterity, had to cut down the
term to 30 years.
The fact is that, in nearly all public corporations in
India, there is an influential element who are strongly
biassed in favour of the reduction of the present rates
of taxation, whatever the effect on the future may be.
This view, plausibly disguised, is persistently forced
upon the Local Government, who are naturally anxious
to support local interests ; and the result frequently
is that the Government of India are the only authority
in the position to form a detached and impartial judg-
ment. I think that the existing rules might suitably
be relaxed to the extent of letting Local Governments
sanction the raising of loans in the open market for
amounts not exceeding five lakhs and for terms not
exceeding 30 years ; but I would not go further.
44868*. Generally speaking, could provincial Govern-
ments be given wider powers (a) in respect of the
creation of appointments and the raising of salaries
the cost of which falls wholly or partially upon them ;
(6) in respect to appointments the cost of which falls
wholly upon imperial revenues ? Could the restric-
tions upon provincial Governments contained in
Article 283 of the Civil Account Code be otherwise
lightened ?—f In respect of the creation of appoint-
ments and the raising of salaries, the cost of which
is wholly or partially provincial, the powers of a Local
Government are as follows :—
(a) It may create a permanent appointment with
a pay of. Rs. 250 per mensem.
(5) It may raise the pay and allowances of an
existing appointment up to Rs. 250 per
mensem.
(c) It may sanction a temporary appointment or
deputation for six months, if the salary is
not at a higher rate than Rs. 50,000 a year.
(d) It may sanction a temporary appointment or
deputation for a longer period, if the salary
does not exceed Rs. 250 per mensem.
(e) It may sanction a revision of establishment
which involves additional expenditure of
Rs. 25,000 a year.
The limits of these powers are, in the main, the
restrictions which were imposed on the Government
of India before August 1907, when the Secretary of
State .agreed to relax them. The powers of the
Government of India, as now defined, are expressed
J by substituting for the words italicized in clauses
(a) to (e) above the following words :—
(a) Rs. 500 per mensem.
(6) Rs. 750 per mensem.
(c) two years.
(d) Rs. 500 per mensem.
(e) Rs. 50,000 a year.
The propriety of extending those enhanced powers
to Local Governments, with whom provincial settle-
ments have been made, was considered when the
Secretary of State’s orders arrived : but it was decided
to leave the matter to be dealt with by the Royal
Commission, as it was recognized that any such exten-
sion would be a momentous piece of decentralization.
It is now suggested that the powers in clauses
(a) to (e), as enlarged in the manner described, may
be conferred on all Local Governments with provincial
settlements. This measure of devolution would save
a large amount of correspondence, and would give
■fThe reply to this question embodies suggestions
which were made to the Finance Department by
Mr. Meyer before the Royal Commission assembled,
and which the Department is prepared to accept.
i This statement requires two minor corrections, with
which I have not burdened the text. In the first place,
the Government of India may raise an officer’s salary to
Rs. 750 ; this is somewhat different from his pay and
allowances. In the. second place, the powers in clause
(a) cannot be exercised at all, and those in clause Q>') can
only be partially exercised, in respect of gazetted appoint-
ments Ordinarily recruited from England.
Local Governments a much freer hand than at present
in dealing with the establishments which are a charge
upon their revenues.
In respect of the creation of appointments and the
raising of salaries, the cost of which is wholly imperial,
the powers of Local Governments and minor adminis-
trations are defined in Article 278 of the Civil Account
Code. It is now suggested that the following extended
powers may be given in such cases, subject only to
the condition that sufficient budget provision exists :—
(a) Local Governments (i.e., those having pro-
vincial settlements) may revise establishments
when any additional expense involved is met
either by an equivalent reduction in the
same department or in some other department
charged to the same major head, provided
that the revision does not entail the creation
of a new appointment on pay of more than
Rs. 500 per mensem, or the raising of the
pay and allowances of any existing appoint-
ment to more than Rs. 500 per mensem.
(Z>) Minor administrations (i.e., those mentioned
in note'(iv) under’ Article 278, Civil Account
Code) may exercise the same powers, but
with Rs. 100 substituted for Rs. 500.
(c) Local Governments and minor administrations
may deal with non-gazetted establishments as
at present (Article 278 (a) (2), Civil Account
Code), but with power io create new appoint-
ments, or to raise the pay and allowances of
existing appointments, up to Rs. 100 per
mensem in each case.
(<Z) They may sanction temporary appointments
and deputations, subject to budget provision,
if the salary plus deputation allowance does
not exceed Rs. 100 and the duration of the
appointment or deputation does not exceed
12 months.
It is also suggested that the quarterly statements
prescribed in Article 278 (b) need not be submitted.
In respect to the further restrictions embodied in
the rules cited in Article 283, Civil Account Code,
certain relaxations may now be recommended in con-
nection with services of which the cost is wholly or
partly provincial. They are mentioned seriatim, with
reference to the clauses of paragraph 4 of the Resolu-
tion quoted in the article.
Clause (3).—This may be modified as suggested
above.
Clauses (4) and (5).—These restrictions may be
removed.
Clause (6).—In lieu of this, it may be laid down
that a Local Government before altering the
rates of duty on spirits and drugs in a district
which borders on another province, should
obtain the consent of the neighbouring pro-
vincial Government, referring the matter to
the Government of India only in the event
of the other Local Government disagreeing.
Clause (8).—The first sentence of this clause may
be cancelled.
Clause (10).—This is obsolete and may be with-
drawn.
44869*. Have you any other suggestions to make in
respect of the rules which now govern salaries, deputa-
tion and other allowances, and rewards or honoraria ?
—f In regard to salaries, the only suggestion I have to
make which is not already covered by the preceding
answer is a very minor one. Under Article 279A of
the Civil Account Code, the disallowance of an Audit
Officer in respect of pay and allowances drawn by an
officer under its control may be remitted by a Local
Government, on certain conditions, in so far as the
payments under objection were made more, than six
months before the date of the audit challenge. If,
however, the erroneous payments were made within
six months of the date of challenge, they cannot be
remitted without the orders of the Government of
India. In cases of this latter type, the Government of
India almost invariably accept the recommendation
of the Local Government ; and I think the remission
of disallowances might be left to the discretion of
t Paragraphs 2, 3, 4 and 5 of the reply to this question
embody suggestions which were made to the Finance
Department by Mr. Meyer before the Royal Commission
assembled, and which the department is prepared to
accept.
Mr. J. S.
Meston.
G Apr., 1908,