tions in the text of the Franchise Committee's report, and with due regard to the necessity for special procedure in cases where their orbits overlap.

The Committee have given much attention to the difficult question of the principle on which the provincial revenues and balances should be distributed between the two sides of the provincial Governments. They are confident that the problem can readily be solved by the simple process of common sense and reasonable give and take, but they are aware that this question might, in certain circumstances, become the cause of much friction in the provincial Government, and they are of opinion that the rules governing the allocation of these revenues and balances should be framed so as to make the existence of such friction impossible. They advise that, if the Governor, in the course of preparing either his first or any subsequent budget, finds that there is likely to be serious or protracted difference of opinion between the executive council and his ministers on this subject, he should be empowered at once to make an allocation of revenue and balances between the reserved and transferred subjects, which should continue for at least the whole life of the existing legislative council. The Committee do not endorse the suggestion that certain sources of revenue should be allocated to reserved, and certain sources to transferred, subjects, but they recommend that the Governor shall allocate a definite proportion of the revenue, say, by way of illustration two-thirds to reserved and one-third to transferred subjects, and similarly a proportion, though not necessarily the same fraction, of the balances. If the Governor desires assistance in making the allocation, he should be allowed at his discretion to refer the question to be decided to such authority as the Governor-General shall appoint. Further, the Committee are of opinion that it should be laid down from the first that, until an agreement which both sides of the Government will equally support has been reached, or until an allocation has been made by the Governor, the total provisions of the different expenditure heads in the budget of the budget of the province for the preceding financial year shall hold good.

The Committee desire that the relation of the two sides of the Government in this matter, as in all others, should be of such mutual

sympathy that each will be able to assist and influence for the common good the work of the other, but not to exercise control over it. The budget should not be capable of being used as a means for enabling ministers or a majority of the legislative council to direct the policy of reserved subjects; but on the other hand the executive council should be helpful to ministers in the desire to develop the departments entrusted to their care. On the Governor personally will devolve the task of holding the balance between the legitimate needs of both sets of his advisers."-Jt. S. C. R. 1.

For the scheme of dyarchy and distinction between reserved and transferred subject cf. M-C. R. 218-23, 238, 241; Fn. Com. R. 19-21, 23-24; for devolution of authority re provincial subjects and superintendence and control thereof by Governor-General, see M.-C. R. 212-13, 240, Fn. Com. R. 16-18, 22; for allocation of revenue for administration of transferred subjects, cf. M-C. R. 255-57; for settlement of doubts as to whether matter is provincial or transferred see M.-C. R. 221, 239-254, Fn. Com. R. 60.

cl. (1) (a) "Classification of subjects see Devolution Rules (Appendix A) Rules 3-13; "Central subjects see ibid R. 3, and list in schedule I, Part I; Provincial subjects see ibid list in schedule I part II.

66

Cl. (1) (b) Devolution of authority in respect of provincial subjects' see ibid Rule 13; "Allocation of revenues Rule 14.

Cl. (1) c)

66

see ibid

Agency of local governments see ibid Rules 46-48. Cl. (1) (d) Transferred subjects see ibid Rules 6 and 8, and list in Schedule II and Rules in Schedule III; for allocation of revenues for administration of transferred subjects, see ibid rules 31-34.

Cl. (2) (ii) "Contributions payable by local governments see

ibid Rules 17-20.

Cl. (2) (iii) "Finance Department see ibid Part III, Rules

36-45.

Cl. (2) (iv) Exercise of authority over members of public

services see ibid Rules 10-12

Cl. (2) (v) For settlement of doubts re provincial subjects see ibid Rule 4; for settlement of doubts re transferred subjects see ibid

Rule 9.

Cl. (3)

"Powers of superintendence, etc. over local governments see ibid Rule 49.

Borrowing powers of local govern

ments.

2. (1) The provision in sub-section (1) of section thirty of the principal Act, which gives power to local governments to raise money on real or personal estate within the limits of their respective governments by way of mortgage or otherwise, shall have effect as though that provision conferred a power on local governments to raise money on the security of their allocated revenues, and to make proper assurances for that purpose.

(2) Provision may be made by rules under the principal Act as to the conditions under which the power to raise loans on the security of allocated revenues shall be exercised.

(3) The provision in sub-section (1) of section thirty of the principal Act, which enables the Secretary of State in Council with the concurrence of a majority of votes at a meeting of the Council of India to prescribe provisions or conditions limiting the power to raise money, shall cease to have effect as regards the power to raise money on the security of allocated revenues.

Sec. 30(1A) Act; for power to make rules, see Sec. 44 (s. 129A, Act).

“This clause has been inserted to regularise the raising of loans by local Governments on the special security of their own provincial revenues."-Jt. S. C. R. 1.

For borrowing powers of local governments cf. M.-C. R. 111, 211; Fn. Com. R. 80.

For Rules re conditions under which a local government may raise loans, see Local Government (Borrowing) Rules― (Appendix B).

Revised of local government in certain provinces.

3.-(1) The presidencies of Fort William in Bengal, Fort St. George, and system Bombay, and the provinces known as the United Provinces, the Punjab, Bihar and Orissa, the Central Provinces, and Assam, shall each be governed, in relation to reserved subjects, by a governor in council, and in relation to transferred subjects (save as otherwise provided by this Act) by the governor acting with ministers appointed under this Act.

The said presidencies and provinces are in this Act referred to as governor's provinces " and the two first-named presidencies are in this Act referred to as the presidencies of Bengal and Madras

(2) The provisions of section forty-six to fiftyone of the principal Act, as amended by this Act, shall apply to the United Provinces, the Funjab, Bihar and Orissa, the Central Provinces, and Assam, as they apply to the presidencies of Bengal, Madras, and Bombay Provided that the governors of the said provinces shall be appointed after consultation with the Governor-General.

Sec. 46 (1) Act; Reserved and Transferred subjects defined s. 1(4) [45A (4) Act].

"The question has been raised as to the communications between the Governors of provinces and the Secretary of State. The question as to whether such communication shall in future take place, and as to the procedure to be adopted in them, may wel! be left to the Secretary of State. In the opinion of the Committee there is no cause at present for disturbing the existing position, except to the extent to which the Secretary of State relaxes his powers of direction and control over local governments. To that extent the Government of India will also withdraw from intervention; but India is not yet ripe for a true federal system, and the central government cannot be relegated to functions of more inspection and advice. The Committee trust that there will be an extensive delegation, statutory and otherwise, to provincial governments of some powers and duties now in the hands of the Government of India; and they trust also that the control of that Government over provincial matters will be exercised with a view to preparing the provinces for the gradual transfer of power to the provincial Government and legislature."-Jt. S. C. R. 1.

For argument in favour of Governorship cf. M-C. R. 214.

For delegation of powers of control vested in the Governor General in Council by some laws see Devolution Act 1920.

Appointment of Minister and Council Secretaries.

4.-(1) The governor of a governor's province may, by notification, appoint ministers not being members of his executive council or other officials, to administer transferred subjects, and any ministers so appointed shall hold office during his pleasure.

There may be paid to any minister so appointed in any province the same salary as is payable to a member of the executive council in that province, unless a smaller salary is provided by vote of the legislative council of the province.