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What were the reasons for bringing the Permanent Settlement? What changes did it bring in the villages?

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After establishing their authority in Bengal, the British tried to bring about a series of land tax systems there. Their aim was to make maximum profit. But all the land tax systems the British brought were failures. The Company failed to get a permanent income. In these circumstances the officials of the Company began to think of a new tax system.

In the 1970s, the village economic condition was in a crisis. Agricultural products decreased fearfully. Villagers faced famine. To save the financial system in Bengal from utter min, the officials of the Company were forced to do something. At the same time they had to increase the revenues of the government. They thought that both these aims could be achieved by encouraging people to invest more in agriculture. With this in mind, they formulated the Permanent Settlement. They thought by this, a fixed amount would flow into treasury and the investors would make good profit from the land. This is how they thought: The land tax is fixed. It won’t increase in the future. The investment in agriculture would save the financial situation in Bengal.

They thought the Permanent Settlement would help the small scale farmers and also landowners. They thought the landowners would invest in the land and they would be loyal to the Company.

The Company faced a big challenge in implementing the Permanent Settlement. They wanted people who would increase the agricultural products and pay the tax regularly to the government. In other words, the Company Officials did not know with whom they should make the Permanent Settlement. After having long discussions with the officials, Lord Cornwallis solved the problems and in 1793 it was executed.

The Permanent Settlement was done with the Rajas and Talukdars in Bengal. They were considered as Zamindars. The Zamindars were to give a fixed amount as tax to the government each year. As per villages. The places from they collected taxes were called zamindaris, The Zamindar had the responsibility of giving taxes in lump sum.

The farmers in the estates became the vassals of the zamindars. Zamindars collected taxes from the villagers. After giving the tax to the government, they kept the rest of the money. This was their income. The Zamindar had to make regular payments. If anybody failed, his zamindaris would be taken away from him.

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