Home charges
Topic: Indian Economy on the Eve of Independence · NCERT: Beyond NCERT
Meaning
Home charges were expenses paid in Britain on behalf of colonial India. India's own revenues and export earnings had to pay for them. They were a major part of the drain of wealth, which is Dadabhai Naoroji's idea that India's wealth flowed to Britain with nothing coming back in return. Home charges included:
- the cost of the India Office in London
- salaries, leave allowances and pensions of British officials
- interest on public debt, and guaranteed interest on money invested in the railways
- military costs, including wars fought outside India
Example
A retired British official who had served in India got his pension in Britain. The money came out of Indian revenues. Many such payments together made up the home charges.
Don't confuse with
- Drain of wealth: the drain is the whole outflow of wealth. It includes home charges, but also private money sent home, such as profits of British firms and savings of British officials. Home charges are only the government part.