Lord William Bentick

• The arrival of Lord William Bentinck marked the beginning of a new era in India. He was known for his resolution, capacity, and spirit.
• Bentinck had prior experience as the Governor of Madras and was supported by an efficient staff of officials, which helped him consolidate and reorganize the administrative machinery in India.
• He was a liberal in his time, aligned with the ideals of the Catholic Emancipation and parliamentary reform.
• Bentinck was the first Governor-General to act on the principle that the welfare of the people should be the main responsibility of the British in India.
• He introduced a sense of British freedom into the oriental despotism of India, focusing on reforms rather than military conquests.
• Despite being considered unsuccessful as the Governor of Madras, he is regarded as one of the greatest Governors-General of India due to the large number of reforms he implemented.
• The wars during the reigns of Lord Hastings and Lord Amherst, including the Nepal War, Third Maratha War, First Burmese War, and the action against the Pindaris, drained the Indian exchequer.
• When Bentinck arrived in India, he found the Indian treasury almost exhausted and a deficit budget.
• The renewal of the Charter of the Company was approaching, and the Directors of the Company wanted to present a favorable picture of Indian administration to the public.
• As a result, economy, reduction, and increase in total revenues became the key focuses of Bentinck’s policy.

Financial Reforms

• William Bentinck appointed two committees to inquire into the expenditure on civil and military affairs of the Company and make recommendations for its reduction.
• The committees made their recommendations, which Bentinck accepted.
• Abolished many sinecure jobs, cut down allowances, and reduced salaries of civil servants.
• In the case of the military establishment, efforts were limited, but Bentinck halved the Bhatta allowances paid to military personnel.
• Prior to Bentinck, the Directors of the Company tried to reduce the allowances but failed.
• November 1828: an order was issued to reduce Bhatta by 50% at all stations within 400 miles of Calcutta.
• The decision sparked agitation and condemnation from the Anglo-Indian press, but Bentinck persisted and the opposition eventually faded.
• Abolished Provincial Courts of Appeal and Circuit, which were seen as “resting places for unfit members of the services.”
• A significant amount of savings was made by abolishing these courts.
• Revenue increase was pursued by regulating the opium trade. Bentinck implemented a system of licences for direct conveyance of opium from Malwa to Bombay, boosting revenues.
• Prior to the Diwani of Bengal, grants of revenue-free lands were made to individuals and institutions.
• Regulations of 1793 and 1819 allowed the Collectors to examine the validity of these grants.
• A Regulation of 1828 directed Collectors to scrutinize the grants, leading to many revenue-free lands being resumed by the Government.
• This action led to discontent, but it contributed to increasing the Company’s revenues.
• The revenue settlement of the North-Western Province was carried out during this time.
• Bentinck personally toured the province, consulting experts, and introduced a settlement plan in 1833.
• The land was surveyed, soil was classified, and a 30-year settlement was introduced with ryots, zamindars, or the village community.
• The settlement encouraged soil improvement and guaranteed the Government a fixed revenue.
• Employment of Indians in the Company’s service resulted in some economy, as Indian salaries were much lower than European ones.
• The result of these reforms was that the Company’s finances were rehabilitated, with a surplus of two million instead of a deficit of one million.