- After the revolt of 1857, the British Government felt the necessity of seeking the co-operation of the Indians in the administration of India.
- For this, three acts were enacted by the British Parliament in 1861, 1892 and 1909.
- System of Budget in British India was introduced in 1860.
- The Indian Councils Act of 1861 is a significant landmark in the constitutional and political history of India.
Features of the Act of 1861 were1. It started associating Indians with the law-making process, thus making a beginning of representative institutions. It provided that the viceroy should nominate some Indians as non-official members of his expanded council.
2. In 1862, Lord Canning, the then viceroy, nominated three Indians to his legislative council—the Raja of Benaras, the Maharaja of Patiala and Sir Dinkar Rao.
3. It restored the legislative powers to the Bombay and Madras Presidencies thus initiating the process of decentralization opposed to the centralising tendency that started from the Regulating Act of 1773 and reaching its peak under the Charter Act of 1833.
4. This devolution resulted in the grant of almost complete internal autonomy to the provinces in 1937.
5. It also provided for the establishment of new legislative councils for Bengal, North-Western Frontier Province (NWFP) and Punjab, which were established in 1862, 1866 and 1897, respectively.
6. Viceroy could make rules and orders for the more convenient transaction of business in the council.
7. It recognized the ‘portfolio’ system, introduced by Lord Canning in 1859.
8. Under this, a member of the Viceroy’s council was made in-charge of one or more departments of the government and was authorized to issue final orders on behalf of the council on matters of his department(s).
9. Viceroy could now issue ordinances, which were valid for 6 months, without the concurrence of the legislative council, during an emergency.
