With reference to the period of colonial rule in India, “Home Charges” formed an important part of the drain of wealth from India. Which of the following funds constituted “Home Charges”?
1. Funds used to support the India Office in London.
2. Funds used to pay salaries and pensions of British personnel engaged in India.
3. Funds used for waging wars outside India by the British.
Select the correct answer using the codes given below: (2011)
b)1 and 2 only
c)2 and 3 only
d)1, 2 and 3
Answer : B
Home Charges refer to the expenditure incurred in England by the Secretary of State on behalf of India. The main constituents were:
- Dividend to the shareholders of the East India Company.
- Interest on Public Debt raised abroad.
- Expenses on India Office establishment in London.
- Pensions and furloughs payments of British officers in the Civil and Military departments in India.
- Payments to the British war office.
- Store purchases in England Interest on Foreign Capital Investments was another important leakage from the national income stream.