Q. 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 : (UPSC Prelims 2011)
Answer:
1 and 2 only
Notes: he correct answer is
1 and 2 only. While the "Drain of Wealth" theory by Dadabhai Naoroji encompassed a wide variety of ways Indian resources were siphoned to Britain, the specific administrative category of
"Home Charges" refers to the recurring expenditure incurred in England by the Secretary of State on behalf of the Government of India.
- Support for the India Office (Correct): This included the costs of the India Office establishment in London, the salary of the Secretary of State, and the administrative expenses required to govern India from British soil.
- Salaries and Pensions (Correct): A massive portion of Home Charges went toward the "Home" pay, leave allowances, and pensions of British military and civil officers who had served in India. This ensured that even after retirement, Indian revenues supported British personnel living in the UK.
- Wars outside India (Incorrect in the context of Home Charges): While Britain did use Indian money and man-power for external wars (like those in Afghanistan, Burma, or China), these were often classified under Military Expenditure or direct imperial costs. In the strict accounting of "Home Charges" presented in many official historical keys, these military campaigns are distinguished from the administrative and pensionary "Home" expenses.
Other Components of Home Charges:- Interest on the Indian Public Debt raised in England.
- Guaranteed interest on capital invested by British companies in Indian Railways.
- Purchase of stationary and other stores in the UK for use in India.