The Montagu-Chelmsford Proposals were aimed at the gradual introduction of self-governing institutions in India. They led to the enactment of the Government of India Act 1919, which introduced several landmark constitutional changes:

• Dyarchy in Provinces: It divided provincial subjects into two parts—Transferred (administered by the Governor with the aid of ministers) and Reserved (administered by the Governor and his executive council without being responsible to the legislative council).

• Bicameralism at the Center: For the first time, it introduced a bicameral legislature consisting of an Upper House (Council of State) and a Lower House (Legislative Assembly).

• Direct Elections: It introduced direct elections in the country for the first time, though the franchise was limited based on property, tax, or education.

• Separation of Budgets: It separated provincial budgets from the Central budget and authorized provincial legislatures to enact their own budgets.