Major Administrative Changes After 1857: Central and Provincial Government
Modern History › Administrative and Judicial Developments Under British Rule · Topic 26.8
After 1857 the British moved to narrow the ruler-subject gap while consolidating their economic interests in a new stage of colonialism. The Act of 1858 transferred power from the Company to the Crown through a Secretary of State with an advisory council of fifteen, and the Governor-General became Viceroy. The Indian Councils Act of 1861 added a legislative council without real powers, and from 1870 financial decentralisation gave provinces a share of revenue.
7 min read · UPSC Prelims · History · Administrative and Judicial Developments Under British Rule
At a Glance
- Act of 1858 Power from the Company to the Crown; Secretary of State with a council of 15
- Viceroy New title of the Governor-General
- Act of 1861 Fifth member (a jurist); legislative council of 6 to 12 additional members
- Finance Mayo 1870; Lytton 1877; division of revenues 1882
- Exam link UPSC Prelims, Modern History: Administrative and Judicial Developments Under British Rule
Where Does It Fit?
This is the eighth topic of the category on administrative and judicial developments under British rule. The previous topic covered the reforms of Cornwallis and Bentinck. This topic covers the changes in the central and provincial government after 1857. The next topic covers local bodies. Previous topic: Judicial Reforms Under Cornwallis and Bentinck.
Why Did the Administration Change After 1857?
The British were quick to learn from 1857 that organised mass action could seriously challenge their rule. They sought to narrow the ruler-subject gap, to reduce the masses’ alienation from the administration, and to learn more about the customs and values of the people through associating natives with the administration, so as to handle another 1857 more tactfully. The revolt is in Beginning and Spread of the Revolt: Meerut and Delhi.
The second half of the nineteenth century also saw further spread of the industrial revolution and the emergence of new industrial powers, the USA, Japan and European countries, with fierce competition for colonies and sub-colonies for raw materials, markets and capital investment. British supremacy in world finance and the manufactured goods trade came to an end. There were large British capital investments in railways and loans to the Government of India, and smaller ones in tea, coal, jute, shipping, trade and banking. All this opened a new stage of colonialism, whose main concern was to consolidate the British position in India and protect economic and commercial interests against political dangers, with a renewed upsurge of imperial control seen in the viceroyalties of Lytton, Dufferin, Lansdowne, Elgin and above all Curzon.
How Was the Central Government Reorganised?
The Act for Better Government of India, 1858 transferred the power to govern from the East India Company to the British Crown, to be exercised through a Secretary of State, replacing the Directors of the Company and the Board of Control. The Secretary of State was a member of the British cabinet, assisted by a council of fifteen, and answerable to Parliament. All initiative and final decisions rested with him and the council was only advisory. This ended the dual system introduced by Pitt’s India Act of 1784, and the ultimate power over India remained with Parliament.
The government in India was carried on, as before, by the Governor-General, whose prestige, if not authority, rose with the new title of Viceroy. He was assisted by an executive council whose members headed departments and were his official advisers. Concentration of main authority in the Secretary of State in London gradually reduced the Viceroy to a subordinate status and further alienated Indian opinion from policy-making, while increasing the influence of British industrialists, merchants and bankers on policy, which made Indian administration more reactionary than before 1858.
By the Indian Councils Act of 1861, a fifth member, who was to be a jurist, was added to the Viceroy’s executive council. For legislative purposes the Viceroy could add six to twelve additional members, at least half of whom had to be non-officials, who could be Indian or English.
| Weakness of the legislative council of 1861 | Detail |
|---|---|
| Matters | It could not discuss important matters, and no financial matters at all without prior approval |
| Budget | It had no control over the budget |
| Executive | It could not discuss executive action |
| Assent | The Viceroy had to approve a bill, and the Secretary of State could disallow even an approved law |
| Members | Indian non-officials were from elite sections only, princes, landlords and diwans, and not representative of Indian opinion |
| Ordinances | The Viceroy could issue ordinances valid for six months in an emergency |
The only important function of the council was to endorse official measures and give them the appearance of having been passed by a legislative body. The British government in India remained, as before, an alien despotism. The constitutional side of the Acts is in Constitutional Development 1861-1935: Councils Acts to the Government of India Act.
How Were the Provinces Governed?
The Indian Councils Act of 1861 restored to the provinces of Madras and Bombay the legislative powers taken away in 1833, and legislative councils were set up later in other provinces. The three presidencies of Bombay, Madras and Calcutta had more rights and powers than other provinces. The presidencies were administered by a governor and an executive council of three appointed by the Crown, while other provinces were administered by lieutenant governors and chief commissioners appointed by the Governor-General.
How Was Finance Decentralised?
| Year | Step |
|---|---|
| 1870 | Lord Mayo made fixed grants out of central revenues to provinces for services such as police, jails, education, medical services and roads, the first step in separating central and provincial finances; provinces administered these as they liked |
| 1877 | Lord Lytton transferred further heads of expenditure, land revenue, excise, general administration and law and justice, and gave provinces a fixed share of income from stamps, excise and income tax |
| 1882 | All sources of revenue were divided into three groups: general (wholly to the Centre), provincial (wholly to the provinces) and those divided between the two |
These steps were more an administrative reorganisation to raise revenue and cut expenditure than progress towards provincial autonomy. The central government remained supreme and kept detailed control over the provinces, which was inevitable since both were subordinate to the Secretary of State and the British Government. As an analytical point, the changes after 1857 widened participation formally while concentrating power in London, so that Indian opinion gained forums but not authority, a contradiction that nationalists used in their demands. The next stage, in local bodies, is in Local Bodies Under British Rule.
Why Is This Topic Important?
- 1858 Act The transfer to the Crown is a stock Prelims fact
- Financial decentralisation Mayo, Lytton and the 1882 division are asked
- Limits of the 1861 Act A frequent Mains point
What Came Next?
The next topic covers local bodies under British rule. Next topic: Local Bodies Under British Rule.
Key People and Terms
- Secretary of State The cabinet minister for India after 1858
- Viceroy New title for the Governor-General from 1858
- Presidencies Bombay, Madras and Calcutta
- Lieutenant governors Heads of provinces other than the presidencies
- Financial decentralisation Transfer of heads of revenue and expenditure to provinces
- Portfolio The charge of a department held by an executive councillor
Exam Corner
Points to Remember
- Act of 1858: Crown, Secretary of State, council of 15; Viceroy.
- Act of 1861: fifth member a jurist; 6 to 12 additional members.
- Mayo 1870; Lytton 1877; 1882 three groups of revenue.
- Ordinances valid for six months.
- Presidencies had a governor and a council of three.
Do Not Confuse With
- Act of 1858 and 1861 1858: Crown rule; 1861: legislative council
- Mayo and Lytton Mayo: fixed grants; Lytton: more heads and shares
- Presidencies and other provinces Governors versus lieutenant governors and chief commissioners
Memory Hook
The Crown took over, the Viceroy was named, and the money was divided but the power was not.
Mains Angle
Questions ask about the new administrative structure after 1858. These points add depth.
- Centre Secretary of State and Viceroy
- Legislature Council without real power
- Provinces Finance without autonomy
A Question You May Face
An original practice question, not a past paper question.
“Examine the administrative changes introduced after 1857 and their limits.”
How to Answer
- Reasons 1857 and the new colonialism.
- Centre 1858 and 1861 Acts.
- Provinces Finance decentralisation.
- Conclude Centralised control.
GS Relevance
Frequently Asked Questions
Why did the British change the administration after 1857?
The revolt showed that organised mass action could threaten their rule, so they wished to narrow the gap with the ruled and associate natives with the administration. A new stage of colonialism after the spread of industrialisation also required consolidating British economic interests.
What did the Act for Better Government of India, 1858 do?
It transferred power from the East India Company to the Crown, to be exercised by a Secretary of State, a cabinet member assisted by an advisory council of fifteen. The Governor-General became the Viceroy and the dual system of Pitt's India Act ended.
What did the Indian Councils Act of 1861 provide?
It added a fifth member who was a jurist to the Viceroy's executive council and allowed six to twelve additional members for legislation, of whom at least half were non-officials. The council had no real powers over budgets or executive action.
How were provinces governed after 1858?
The presidencies of Bombay, Madras and Calcutta were administered by a governor and an executive council of three appointed by the Crown, while other provinces had lieutenant governors or chief commissioners appointed by the Governor-General. The 1861 Act restored legislative powers to Madras and Bombay.
What were the steps in financial decentralisation?
In 1870 Mayo made fixed grants to provinces for services like police, education and roads. In 1877 Lytton transferred more heads of expenditure and a share of some revenues. In 1882 revenue sources were divided into general, provincial and shared groups.
PYQ Practice — Statement Analysis
1 The Act of 1858 transferred power from the East India Company to the Crown.
A Secretary of State with a council of 15 exercised it.
2 The Governor-General was given the title of Viceroy after 1858.
His prestige rose.
3 The legislative council of 1861 had control over the budget.
It had no control over the budget.
4 Lord Mayo began financial decentralisation in 1870.
He made fixed grants for certain services.
5 The council of the Secretary of State under the Act of 1858 had final decision-making power.
It was only advisory.
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