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Understanding the 74th Amendment: A Step Towards Empowering Urban Local Bodies

Analyzing the Role of the 74th Amendment in Strengthening Local Governance

Understanding the 74th Amendment: A Step Towards Empowering Urban Local Bodies

  • 21 Nov, 2024
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Understanding the 74th Amendment to the Indian Constitution

The 74th Amendment, introduced in 1992, aimed to enhance the autonomy of Urban Local Bodies (ULBs) by assigning them specific roles and responsibilities. This legislative change marked a significant step towards decentralization, positioning ULBs as pivotal institutions for self-governance. The amendment mandated the transfer of 18 functions from state governments to ULBs, intending to foster more efficient local governance.

Extent of Functional Devolution to ULBs

According to the latest CAG report, 17 out of the 18 designated functions have been formally transferred by 18 states to ULBs. However, only four functions—management of burial grounds, provision of public amenities, prevention of cruelty to animals, and regulation of slaughterhouses—were handed over with complete autonomy. Critical functions like urban planning and slum rehabilitation have not seen effective devolution.

Key Insights from the CAG Report

The CAG report sheds light on the gaps in compliance with the 74th Amendment. Despite the legislative framework, the devolution of autonomy, especially in urban planning and fiscal management, remains limited. Notable issues include:

  • Minimal autonomy for ULBs in crucial areas such as urban planning and fire services.
  • Fiscal reliance: A mere 32% of ULB revenue is self-generated, with the rest sourced from state and central grants.
  • Staff shortages: An acute shortage of personnel exists, with states like Madhya Pradesh experiencing up to 61% vacancy rates.

The Importance of Urban Planning for ULBs

Urban planning is vital as it influences city infrastructure, essential services, and public amenities. However, the CAG report highlights that civic bodies often remain sidelined in city planning processes, limiting their ability to enact long-term improvements.

Assessing the Fiscal Health of ULBs

The report points out a 42% gap between the revenue resources of ULBs and their expenditures, indicating a heavy dependence on governmental grants. This fiscal disparity hinders their capacity to independently manage local projects.

Provisions for Mayoral Elections and Tenures

Currently, only five states—Chhattisgarh, Haryana, Jharkhand, Tamil Nadu, and Uttarakhand—permit direct mayoral elections. Furthermore, only nine states ensure that a mayor's term aligns with the five-year tenure of the ULB, which is crucial for governance continuity and effective project execution.

Gender Representation in ULBs

Six states have implemented a 50% reservation for women in ULBs, aiming to enhance female participation in urban governance. Nonetheless, broader adoption of this measure is necessary to achieve significant gender representation.

Consequences of Limited Devolution of Powers

The constrained devolution of powers hampers ULBs' effectiveness in managing urban services, addressing community needs, and promoting urban development. Without sufficient authority, financial backing, or human resources, ULBs find it challenging to operate as independent governance entities, thus undermining the goals of the 74th Amendment.

Quotation for Future Civil Servants: "Empowering local governance is the cornerstone of a truly representative democracy, fostering accountability and grassroots development."

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