Under the terms of the Covenants and the agreements entered into by the Rulers privy purses are payable to the Rulers, out of the revenues of the States concerned and payments have so far been made accordingly. During the course of the discussions with the Indian States Finances Enquiry Committee, it was urged by most of the States that the liability for paying purses of Rulers should be taken over by the Centre on the ground that-a. privy purses have been fixed by the Centre;b. privy purses are political in nature; andc. similar payments are not made by the Provinces.
