Objectives of Nizam’s Reforms

Published: Publish Date – 11:30 PM, Wed – 8 Jun 22

Under the administration of the Nizam’s government, the state administration was divided into 14 departments.

Administrative and Revenue Reforms

The administration of the Nizam’s government was by the Prime Minister, the Diwan/Regent, in consultation with the co-regent, advised by the British Resident on important matters, and assisted by a Peshakar or Deputy Minister and four departmental ministers or heads of department. Was. , The state administration was divided into 14 departments – Judicial, Revenue, Police, Public Works, Education, Medical, Municipality, Military, Finance, Post, Railway and Telegraph, Saraf-i-Khas or His Highness Privy Purse Estate, Political and legal.

Of the above 14 departments, the first seven were under the control of a separate minister (sadar-ul-mihms), who communicated directly with the prime minister through the secretaries of the government. The four Sadar-ul-Mihams were as follows:

1. Nawab Bashir-ud-Daulah Bahadur, Judicial and Prison Administration
2. Nawab Mukarram-ud-Daula Bahadur, Revenue Department in all its branches
3. Nawab Shamsir Jung Bahadur, Police Department
4. Nawab Shahab Jung Bahadur, Public Works, Municipality, Education and Medical Department.

According to Chirag Ali’s account, the Secretariat Department under the Prime Minister consisted of:

1. Judicial and Police, a secretary
2. Revenue one secretary and one assistant
3. Military irregular or jamaderi, a secretary and an assistant
4. Public Works, one secretary and three assistants
5. Military Reform Soldiers, a Secretary and an Assistant
6. Miscellaneous, one secretary and one assistant
7. English office, in which the military secretary and assistant serve as private secretary and assistant
8. Sarf-e-Khas, a secretary and an assistant
9. Political Office, Ek Mir Munshi
10. Legal, a secretary who also serves as a civil judge of a suburban court

The other important reform initiated by Salar Jung was the stabilization of currency. Before 1853, the issue of coins was not a state monopoly. Thus, a large number of counterfeit coins were in circulation and this established the currency economy of the state. Salar Jung made the issue of coins the monopoly of the state. A Central Mint was established in Hyderabad and the District Mints were abolished. It issued the Hali coin and it became the standard currency for all monetary transactions.

According to the reforms of Salar Jung, the system of farming was abolished by taxes on imports and exports. The government treasury was established in the city, and the customs department was taken over by the government and a stamp paper office and decree executing department were established. The customs department took over the duty on salt. In the year 1861, a stamp paper office was established in the metropolis and stamp duty was levied on bonds and other legal instruments, and the duty in stamp was also made payable on petitions, petitions and other documents filed in the Court of Justice.

The first secretariat to be established was the Judicial Secretariat established under the Prime Minister in 1863. Thus by 1864, the basic revenue and regulatory functions were firmly established by Salar Jung. The distinguishing feature of this period was the centralization of power in the hands of the Diwan.

The main objective of Salar Jung’s revenue reforms was to provide economic stability in the state. To realize this, he adopted some measures and abolished the tax agricultural system. Under this system, the tax farmers, daftdars and guttedars benefited immensely. He paid only a fixed amount to the state and collected exorbitant rent from the peasants. This has caused financial loss to the state. Moreover, the middlemen exploited the farmers to the maximum. Salar Jung appointed talukdars, who were paid salaries by the state. His duty was to collect revenue directly from the farmers in the Diwani areas. Thus, the farmer was brought in direct contact with the state, and the revenue was freed from the exploitation of the peasantry.

The success of Salar Jung’s revenue policy was evident from the fact that the gross land revenue collected between 1853 and 1881 increased by almost two and a half times, while the British Indian Empire had a proportionate increase of 25 per cent. The percentage of collection on demand under the Nizam’s dominion was 98.85. The increase in land revenue was due to the fact that the chaotic conditions prevailed when Salar Jung became the Diwan and through his reforms he greatly expanded the area under cultivation. Key features of Salar Jung’s reforms included the institutionalization of revenue functions, centralization of authority in the talukdar at the district level, and the concentration of administrative control at the state level in the prime minister.

To be continued…

Prof. Adapa Satyanarayan
retired professor
Department of History, Osmania University
Tel 9573405551