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  1. Home
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Modern History·Easy

Which of the following statements is/are correct about revenue farming? 1. Lord Cornwallis introduced a system of revenue farming in the province of Bengal. 2. In this system, the European District Collectors would ‘farm’ out the right to collect revenue to the highest bidder. Select the correct answer using the code given below:

Which of the following statements is/are correct about revenue farming?

1. Lord Cornwallis introduced a system of revenue farming in the province of Bengal.

2. In this system, the European District Collectors would ‘farm’ out the right to collect revenue to the highest bidder.

Select the correct answer using the code given below:

Options

  1. a.

    1 only

  2. b.

    2 only

    Correct answer
  3. c.

    Both 1 and 2

  4. d.

    Neither 1 nor 2

Explanation

In 1772, the Governor of Bengal, Warren Hastings, introduced a system of revenue farming in the province of Bengal. In this system the European District Collectors would ‘farm’ out the right to collect revenue to the highest bidder. This system was a total failure and ruined the cultivators, because of the arbitrarily high revenue demands. To undo this disaster, Cornwallis introduced the system of Permanent Settlement in 1793.

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