Published Paper Details:

The public finance system of Hyderabad State before its integration into the Indian Union in 1948 was deeply rooted in feudal and semi-modern administrative practices. The Nizam's government relied heavily on land revenue, taxation, and indirect levies to sustain its administration, generating an estimated annual revenue of around 20-25 crore rupees by the 1940s. However, the burden of taxation disproportionately affected peasants and rural communities, who faced exploitation by landlords, jagirdars, and intermediaries amid a population of over 16 million spread across 82,000 square miles. This paper examines the structure of public finance in Hyderabad State, focusing on revenue sources, taxation policies, and their socio-economic impact. It highlights the jagirdari and sarf-e- khas systems, which concentrated wealth in elite hands--jagirdars controlling nearly 40% of arable land--while stifling economic mobility for the masses. The 1940s levy system exacerbated rural distress by compelling farmers to surrender agricultural produce at below- market rates under the pretext of wartime public distribution. Financial mismanagement, corruption, and unequal taxation fueled the Telangana Peasant Movement (1946-1951), a pivotal uprising against feudal oppression. Post-liberation reforms via Operation Polo introduced land redistribution and modern revenue codes, fostering equity and growth. This transformation underscores the shift from feudal exploitation to accountable economic governance in post-independence India.