System of dyarchy was introduced. The dyarchy means a system of double government in which The principle of dyarchy was a division of the executive branch of each provincial government into authoritarian and popularly responsible sections. The first was composed of executive councillors, appointed, as before, by the crown. The second was composed of ministers who were chosen by the governor from the elected members of the provincial legislature. These latter ministers were Indians.
Subjects were divided into two lists: “reserved” which included subjects such as law andorder, finance, land revenue, irrigation, etc., and “transferred” subjects such aseducation, health, local government, industry, agriculture, excise, etc.
Expansion of provincial legislative council- 70% of the members were to be elected. The system of communal representation and class electorate were further consolidated. Women were given right of vote. The legislative council could initiate legislation but governor assent was required. The governor can veto bill and ordinances.The Legislative Councils could reject the budget but the governor could restore it, ifnecessary.The legislators could ask questions and supplementaries, pass adjournment motions and
vote a part of the budget, but 75% of the budget was still not votable.