With reference to the period of colonial rule in India, “Home Charges” formed an important part of drain of wealth from India. Which of the following funds constituted “Home Charges”? 1. Funds used to support the India Office in London. 2. Funds used to pay salaries and pensions of British personnel engaged in India. 3. Funds used for waging wars outside India by the British. Select the correct answer using the codes given below:

The correct answer is B because Home Charges referred specifically to the administrative expenses of the Government of India paid in England. Statement 1 is correct because the entire cost of the India Office in London, including salaries and maintenance, was charged to Indian revenues. Statement 2 is correct because pensions and allowances of British military and civil officers who served in India were paid from the Indian treasury in London. Statement 3 is incorrect in the context of Home Charges. While India did bear the cost of some wars, Home Charges primarily consisted of interest on public debt, civil and military charges, and guaranteed interest on railways. War expenses were generally categorized as extraordinary expenditures rather than recurring administrative Home Charges. Additionally, the British government occasionally bore some costs of overseas wars, though Indian money was often misused for this purpose, it was not a standard component of the defined Home Charges.