government and legislature of India are in agreement”.
    •    This was to be particularly so in matters of fiscal policy. The
         Committee had expressed the view that the relations of the Secretary
         of State and the Governor General-in-Council should be regulated by
         similar principles so far as ‘reserved’ subjects were concerned.
Central Administration
Two Cardinal Principles In regard to central administration, the two
cardinal principles of the Act were:
    (i) The Government of India was to remain responsible to Parliament,
         although the Imperial Legislative Council was to be enlarged and
         popular representation and influence in it enhanced;
    (ii) The control of Parliament and the Secretary of State over the
         Government of India (and the provinces) was to be relaxed in
         proportion to the changes contemplated in (i).
Devolution Rules The ‘devolution rules’, which were part of the Act,
distinguished carefully between the spheres of the central and provincial
governments, even though the demarcation was not as rigid as it usually is in
a federal set up.
    • In the sphere of financial devolution, the provinces now framed their
         own budgets, whereas previously, provincial budgets were part of the
         central budget. Additionally, they made their own taxation proposals;
         previously, prior sanction of the Governor General was necessary to
         do so.
    • In legislative devolution, a measure of central control was exercised.
         Thus, an authentic copy of every Act to which the governor had given
         his assent had to be sent to the Governor General, who may or may
         not accord his assent to it. If the Governor General gave his assent, a
         copy of the Act had to be sent to the Secretary of State who, again,
         may or may not give his assent.
Executive Power As there was no transfer of power at the Centre, the
Governor General-in-Council continued to be responsible to Parliament
through the Secretary of State-in-Council in respect of all matters.
    • Before the 1919 Act,