45. Item II of our terms of reference refers to Grants-in-aid.
Assam and Orissa now get fixed subventions of Rs. 30 and Rs. 40 lakhs per annum, respectively. The recommendations that we have made for the increase in the provincial share of income-tax and the transfer of a share in the excise on tobacco will increase their revenues substantially like those of other provisions. Even so, however, we have little doubt that these two provinces will still require fixed subventions on higher scales than at present.
The position of East Punjab is peculiar. Everything there is unsettled, and it will take some time for things to settle down. It is clear, however, that this province will require a substantial annual subvention for some time to come.
The position of West Bengal is uncertain, and it is not clear how her finances will shape as a result of the partition. The liability that she will have to take over as a result of the partition. The liability that she will have to take over as a result of the partition is not yet known. All told, however, she will perhaps need some temporary assistance.
