Meston settlement is related to the financial distribution between central government and provincial state before independence of India.

Introduction to the Meston Settlement

Meston settlement is related to the financial distribution between the central government and the provincial state before the independence of India. Under the settlement, 47 subjects were declared to be central subjects. These 47 subjects include defense, external affairs, railway, Post and Telegraph, and so on. 52 subjects were included in provincial lists such as education, local self-government, public health and sanitation, and so on.

These distributions of subjects involved a fiscal deficit for a central government. So, a committee known as Provincial Relation Committee was set up. This committee was presided by lord Meston. This committee had been given the task to make recommendations as to how the deficit could be met.

The Meston committee recommended that the provinces should make contributions so that the budget might be balanced. However, the Meston Settlement could not be implemented.

To conclude, various financial devolution mechanisms were discussed before, becoming a part of the constitution of India.

 

Meston Settlement

 

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