Question

why did east india company incur financial burden during wellesley's regime​

Answer 1

East india company incur financial burden during wellesley's regime​

Explanation:

• The East India Company had suffered for long financially . The company won the Battle of Buxar (1764) and obtained the Bengal overlordship, which immediately demanded professional administrators. During the last century of its existence, the East India Company had to deal with debt; the very reason for the annexation of Bengal was an effort to balance the accounts of the company.
• Taxes were collected with an uncertainty, inspite of the move by the company  in the year 1772 to central revenue collection & also  to reduce corruption. The Bengal famine (1769–70), which killed between 7–10 million people, also exacerbated the financial crisis of the East India company . The crisis became uncontrolled and in 1858 the British Crown was compelled enact direct rule in India
• The Company had inherited the tax system that was followed  by the former Mughal Dynasty, which meant that farmers had paid the bulk of the tax, and that the one third of the income collected was used by company and Crown, much of which was for private armies and spices & tea  production. The use of an obsolete revenue system and regular debts implied, that the company can not effectively administer India

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Answer 2

Answer:

The East India Company struggled financially for much longer than the end.

Explanation:

The East India Company struggled financially for much longer than the end. The Company won the Battle of Buxar (1764) and was awarded the overlordship of Bengal, immediately finding itself in need of trained administrators. The Company was struggling with debt during the last century or so of its existence; the very reason for the annexation of Bengal itself was an attempt to balance the Company books. Taxes were collected with a degree of uncertainty, despite moves by the Company in 1772 to central revenue collection and in 1773 to reduce corruption. This may have exacerbated the Bengal famine (1769–70), which claimed the lives of 7–10 million people. The situation spiralled out of control and the Crown was forced to enact direct rule in 1858. The Company inherited the tax system used by the former Mughal Empire, meaning that the majority of the burden was given to farmers and one-third of the revenue collected was for Company or Crown use, most of which went towards the upkeep of the Company’s private armed forces and the production of tea and spices. However, the Company’s use of an outdated revenue system and frequent debts meant that it could not administer India effectively.