Joint Committee of Indian Constitutional Reform. Minutes of Evidence take before the Joint Committee on Indian Constitutional Reform Unrevised Die Jovis 27 Julii 1933

if (as had emerged from the figures in the Hailey Memorandum) at the time of the date of the passing of the Consttution Act the British-India Budget Central and Provincial as a whole icluding the Budgets of deficit Provinces was a balanced one the Indian States could immediately enter the Federation on the basis of.the status quo as then existing so far as Finance was concerned. [...] Therefore the Secretary of State will agree will he not that the amount of claim which the Provinces snake the effort they make to Income Tax must depend largely upon the expenditure which they think they are called upon to make?—.-It must depeml of course upon two things : First Of all the demand of the Federal Council „and secondly the demands of the Provinces. [...] Yes I quite agree there is the protection of the Order in Council but the Order in Council means of course the advice of the Secretary of State and he will also be accessible to the same kind of pressures as the GovernoGeneral is. [...] Secretary of State do I undestand that you do not contemplate any officers of the Centre in any way intefering with the collection of the Income Tax in the Provinces?—(Sir Malcolm Hailey.) The Centre would continue to assess the Income Tax as before and colect it up to the extent of sending dmands on the assessees. [...] May I draw the attention of the Secretary of State to the fact that under Proposal 70 of the White Paper the Governor has the special responsibility to secure the execution of orders lawfully‘ issued by the GovernoGeneral?—(Sir Samuel Hoare.) Yes.