Colonialism And The Countryside

Question

Why did the British introduce new systems of revenue in place of Permanent Settlement in areas outside Bengal?

Answer

When the British Government expanded its rule outside Bengal, it introduced new systems of revenue. It discarded the system of Permanent Settlement and did not introduce it in any area. It was because of the following reasons:
No Share in Enhanced Income:There was an increase in agricultural price after 1810. It increased the income of the Zamindars in Bengal. But the revenue was already fixed under the Permanent Settlements. So the colonial state was unable to claim any share form the enhanced income of the farmers. As the government wanted to expand its financial resources, it introduced temporary revenue settlements in the newly annexed territories in the ninteenth century.

Impact of the Ideas of David Ricardo:
The British Government introduced some of the idea sof David Ricardo, famous economist, in the state of Maharashtra. Ricardo believed that a land-owner should claim only the average rent that prevailed at a given time. Many peasants in Bengal had leased out their land. So they lived on the rental income. Such income must be taxed. Thus the British introduced the Ryotwari System of revenue settlement in the Bombay Deccan. Herein the revenue was settled directly with the ryot. The revenue paying capacity of the ryot was assessed. The ryot paid his fixed share.
New Systems:

Thus we see that the British Government introduced many new revenue policies such as:

(i) Temporary Revenues settlements

(ii) Ryotwari Settlement.

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