(a) Financial devolution: It is proposed that henceforth there should be a complete separation of the provincial finances from those of the Government of India; that, reserving certain sources of revenue for the Government of India, all others should be made over to the Provincial Governments with the proviso that the first charge on all Provincial revenues will be a contribution towards the maintenance of the Government of India, considered necessary and demanded by the latter. A certain amount of power to impose fresh taxes and to raise loans is also conceded to the provincial Governments subject to the veto of the Government of India.
(b) Legislative devolution: “It is our intention,” say the authors of the report, “to reserve to the Government of India a general overriding power of legislation for the discharge of all functions which it will have to perform. It should be enabled under this power to intervene in any province for the protection and enforcement of the interests for which it is responsible; to legislate on any provincial matter in respect of which uniformity of legislation is desirable, either for the whole of India or for any two or more provinces; and to pass legislation which may be adopted either simpliciter or with modifications by any province which may wish to make use of it. We think that the Government of India must be the sole judge of the propriety of any legislation which it may undertake under any one of these categories, and that its competence so to legislate should not be open to challenge in the courts. Subject to these reservations we intend that within the field which may be marked off for provincial legislative control the sole legislative power shall rest with the provincial legislatures.” It is not proposed to put a statutory limitation on the power of the Government of India to legislate for the provinces, but it is hoped that “constitutional practice” will prevent the central Government interfering in provincial matters unless the interests for which the latter is responsible are directly affected.
(c) Provincial Executive: Article 220 gives the Governor the power to appoint “one or two additional members of his Government as members without portfolio for purposes of consultation and advice.”
These, in substance, are the proposals of the Secretary of State and the Government of India for the future government of the provinces into which India is divided. Some of these latter and some other tracts are expressly excluded from the operation of these recommendations. It will be at once observed that this is neither autonomy nor home rule. It is a kind of hybrid system with final powers of veto and control vested in the Government of India. The provision as to Provincial Legislatures make it still more complicated.
“Let us now explain how we contemplate in future that the executive Governments of the provinces shall be constituted. As we have seen, three provinces are now governed by a Governor and an Executive Council of three members, of whom one is in practice an Indian and two are usually appointed from the Indian Civil Service, although the law says only that they must be qualified by twelve years’ service under the Crown in India. One province, Bihar and Orissa, is administered by a Lieutenant-Governor with a council of three constituted in the same way. The remaining five provinces, that is to say, the three Lieutenant-Governorships of the United Provinces, the Punjab and Burma and the Chief Commissionerships of the Central Provinces and Assam are under the administration of a single official Head. We find throughout India a very general desire for the extension of Council government.... Our first proposition, therefore, is that in all these provinces singleheaded administration must cease and be replaced by collective administration.
“In determining the structure of the Executive we have to bear in mind the duties with which it will be charged. We start with the two postulates; the complete responsibility for the government cannot be given immediately without inviting a breakdown, and that some responsibility must be given at once if our scheme is to have any value. We have defined responsibility as consisting primarily in amenability to constituents, and in the second place in amenability to an assembly. We do not believe that there is any way of satisfying these governing conditions other than by making a division of the functions of the Government, between those which may be made over to popular control and those which for the present must remain in official hands.... We may call these the ‘reserved’ and ‘transferred’ subjects respectively. It then follows that for the management of these two categories there must be some form of executive body, with a legislative organ in harmony with it....
“We propose therefore that in each province the executive Government should consist of two parts. One part would comprise the head of the province and an executive council of two members. In all provinces the head of the Government would be known as Governor.... One of the two Executive Councillors would in practice be a European qualified by long official experience, and the other would be an Indian. It has been urged that the latter should be an elected member of the provincial legislative council. It is unreasonable that choice should be so limited. It should be open to the Governor to recommend whom he wishes.... The Governor in council would have charge of the reserved subjects. The other part of the government would consist of one member or more than one member, according to the number and importance of the transferred subjects, chosen by the Governor from the elected members of the Legislative council. They would be known as ministers. They would be members of the executive Government but not members of the Executive Council; they would be appointed for the life-time of the legislative council, and if reelected to that body would be re-eligible for appointment as members of the Executive. As we have said, they would not hold office at the will of the legislature but at that of their constituents.
“The portfolios dealing with the transferred subjects would be committed to the ministers, and on these subjects the ministers together with the Governor would form the administration. On such subjects their decision would be final, subject only to the Governor’s advice and control. We do not contemplate that from the outset the Governor should occupy the position of a purely constitutional Governor who is bound to accept the decisions of his ministers.”
(d) Provincial Legislatures: “We propose there shall be in each province an enlarged legislative council, differing in size and composition from province to province, with a substantial elected majority, elected by direct election on a broad franchise, with such communal and special representation as may be necessary.”