help guys..... .......
Answers
Firstly, the policy of setting the rate of expected revenue for the foreseeable future meant that the income of the Company from taxation actually decreased in the long-term because revenues remained fixed while expenses increased over time. Meanwhile, the condition of the Bengali peasantry became increasingly pitiable, with famines becoming a regular occurrence as landlords (who risked immediate loss of their land if they failed to deliver the expected amount from taxation) sought to guarantee revenue by coercing the local agriculturalists to cultivate cash crops (i.e. cotton, indigo, jute, while opium plantations were managed directly by the Company), while the long-term private investment by the zamindars in agricultural infrastructure failed to materialise.
It ensured a regular flow of money to the east India company...also a the revenue was a very large amount of money that they got