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Why did the Permanent Settlement lead to a reduction in State expenditure?
- a)Increased expenditure on army officials.
- b)Lower rates reduced the need for constant settlements.
- c)State invested in administrative reforms.
- d)State faced financial difficulties.
Correct answer is option 'B'. Can you explain this answer?
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Why did the Permanent Settlement lead to a reduction in State expendit...
With fixed rates under the Permanent Settlement, the State's expenditure on constant settlements and revenue matters was considerably reduced.
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Why did the Permanent Settlement lead to a reduction in State expendit...
Understanding the Permanent Settlement
The Permanent Settlement was a significant reform introduced by the British in India in 1793, particularly in Bengal. One of its notable impacts was on state expenditure.
Reason for Reduction in State Expenditure
The correct answer is option 'B': Lower rates reduced the need for constant settlements. Here’s a detailed explanation:
Fixed Revenue System
- The Permanent Settlement established a fixed revenue system where zamindars (landlords) were responsible for collecting taxes from peasants and paying a fixed amount to the British government.
- This system meant that the state no longer needed to engage in frequent negotiations or assessments of land revenue, which were resource-intensive processes.
Efficiency in Tax Collection
- With revenues set at a fixed rate, the British could predict income more accurately, leading to reduced administrative costs.
- Zamindars handled the collection, which lessened the need for extensive state machinery to manage tax collection.
Reduction in Administrative Costs
- The need for constant settlements and renegotiations was eliminated. This streamlined the administrative process significantly.
- Fewer bureaucratic resources were required, leading to a decrease in overall state expenditure.
Long-term Financial Stability
- The fixed revenue system provided financial stability for the government, as they knew their income would not fluctuate drastically.
- This allowed the state to allocate resources more efficiently, further reducing unnecessary expenditures.
In summary, the Permanent Settlement led to a reduction in state expenditure primarily because it established a fixed tax regime, which diminished the need for ongoing administrative efforts and negotiations, ultimately streamlining state operations.
The Permanent Settlement was a significant reform introduced by the British in India in 1793, particularly in Bengal. One of its notable impacts was on state expenditure.
Reason for Reduction in State Expenditure
The correct answer is option 'B': Lower rates reduced the need for constant settlements. Here’s a detailed explanation:
Fixed Revenue System
- The Permanent Settlement established a fixed revenue system where zamindars (landlords) were responsible for collecting taxes from peasants and paying a fixed amount to the British government.
- This system meant that the state no longer needed to engage in frequent negotiations or assessments of land revenue, which were resource-intensive processes.
Efficiency in Tax Collection
- With revenues set at a fixed rate, the British could predict income more accurately, leading to reduced administrative costs.
- Zamindars handled the collection, which lessened the need for extensive state machinery to manage tax collection.
Reduction in Administrative Costs
- The need for constant settlements and renegotiations was eliminated. This streamlined the administrative process significantly.
- Fewer bureaucratic resources were required, leading to a decrease in overall state expenditure.
Long-term Financial Stability
- The fixed revenue system provided financial stability for the government, as they knew their income would not fluctuate drastically.
- This allowed the state to allocate resources more efficiently, further reducing unnecessary expenditures.
In summary, the Permanent Settlement led to a reduction in state expenditure primarily because it established a fixed tax regime, which diminished the need for ongoing administrative efforts and negotiations, ultimately streamlining state operations.
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Why did the Permanent Settlement lead to a reduction in State expenditure?a)Increased expenditure on army officials.b)Lower rates reduced the need for constant settlements.c)State invested in administrative reforms.d)State faced financial difficulties.Correct answer is option 'B'. Can you explain this answer?
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