Royal Commission on Labour in India: Report(1929)||
Another difficulty is that arising out of the financial effects of legislation. Under the present constitution the central legislature can pass 1; laws involving a tax on the revenues of provincial governments without the assent of these governments. The number of factories coming under regulation depends on a central Act; but the provinces have to pay for the necessary inspectors. The Workmen's Compensation Act is a central Act; but the Commissioners whose appointment it required had to be supplied by the provinces. Hitherto the inherent difficulties of the position have not been prominent, mainly because legislation at the centre has not made any demands on the provinces except for administrative expenses which have been, and usually will be, comparatively small. But there is an important field of labour legislation which may involve substantial expenditure on the part of the State. Schemes of social insurance and various forms of social benefit may be linked with State contributions and State grunts, and, apart from these, may require the imposition of substantial taxation. While we do not regard these considerations as justifying the withdrawal of labour legislation, even in part, from the Central Legislature, we must stress the importance of avoiding the possibility of the adoption of laws involving large charges on provincial revenues, without the assent of all the provinces affected. There are various means by which this could be arranged, but the discussion of these would take us far outside our proper sphere.