On the grounds of

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Bushwhacker

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In following sentence:

"In 1933, at the depth of the Depression, the Empire Marketing Board was terminated on the grounds of necessary government economy"

Please, what's the meaning of On the grounds of here? What is the sentence saying?

1) Maybe that the EMB was finished, terminated for ever because Goverment couldn't help because it hadn't money for it?
2) Maybe that the EMB was requiring a fast fund help ?

The problem is "on the ground of"

Thank You
 
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Anglika

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"on the grounds of/that" is an idiom indicating that something has been carried out/implemented on the basis of an argument or influence - in this case on the basis that there is not enough government funding available to continue the work of the Empire Marketing Board.
 
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