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Question

Lord William Bentinck reduced the salaries of the civil servant to _____.

A
Harass them financially
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B
Improve the finance of the East India Company
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C
Punish them
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D
Recover the losses from wars
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Solution

The correct option is C Improve the finance of the East India Company
  • The Burmese war had depleted the treasury of the company. Due to the reduced income and increase in the expenditure, the company was facing a deficit of about one crore. So Bentick’s first duty was to economize. His economies measures were extensive and severe.
  • Bentick appointed two committees, one Military and one civil to enquire into the increased expenditure of the company. According to the recommendations of the Committee, Bentick reduced the high salary of the civil Servants.

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