- 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 code given below:
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3
45. Answer: (b)
During the period of direct British rule from 1858 to 1947, official transfers of funds to the UK by the colonial government were called the “Home Charges”. They mainly represented debt service, pensions, India Office expenses
in the UK, purchases of military items and railway equipment. Government procurement of civilian goods, armaments and shipping was carried out almost exclusively in the UK. By the 1930s these home charges were in the range of £40 to £50 million a year. Some government expenditure was on imports which an independent government would have bought from local manufacturers. Of these official payments, we can legitimately consider service charges on non-productive debt, pensions, and furlough payments as a balance of payment drain due to colonialism. Home Charges:
O Cost of the Secretary of State’s India Office in London. (Option 1 is correct)
y East India Company’s military adventure. y Salaries and pensions to British Indian officials and army officers. (Option 2 is correct)
O The compensation of the Company’s shareholders.
O Cost of army training.
O Transport, equipment, and campaigns outside India. y Guaranteed interest on railways.
Elimination technique: Funds used for waging wars outside India by the British were not included in the Home Charges.
