Agreeing to the Fiscal autonomy to India, in which of the following years, the British Government established an Indian Fiscal Commission in the pre-independence Era?
Explanation:
Correct Answer: A [1919]
Explanation:Indian Fiscal Commission was established in 1919 and it recommended tariff Protection for certain Indian Industries. As a follow up to the recommendations to this commission, a tariff board was established in 1923 and in 1924, the Steel Industry of India was given protection.
The joint select committee, which examined the Government of India Bill 1919, recognised that fiscal freedom should not lag behind political freedom. It, therefore, recommended the establishment of a convention that “the Secretary of State should, as far as possible avoid interference on this subject (of fiscal policy) when the Government of India and its legislature are in agreement ….”
The Fiscal Autonomy convention, accepted by the Secretary of State for India in 1921, was a landmark in the history of fiscal policy in India. It paved the way for the appointment, in 1921, of the Fiscal Commission “to examine with reference to all interests concerned, the Tariff policy of the Government of India, including the desirability of adopting the principle of Imperial Preference.”
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By: Harman Sandhu